Original Post www.worldpropertyjournal.com | Re-post Cawley Chicago 5.25.17
While the fairly dramatic increase in long-term interest rates that occurred in late Q4 2016 continued into early Q1 2017, its impact on commercial real estate markets has been fairly limited, especially given the more recent decline in Treasury rates.
While banks maintained their standing as the second most popular lending group in Q1, their market share slipped substantially to 25.5% of loan volume, down from 43% a year earlier. Many key bank interest rates and spreads have not been materially affected by the recent increases in Treasury rates. However, bank construction lending remains limited and banks are selective in granting loans.