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The Loan Ranger

What Happened to Commercial Real Estate Lending in NYC from 2015 to 2016

Commercial real estate lending in New York City shifted downward in 2016, with loan origination dropping 17% year over year, from $99 billion in 2015 to $82 billion last year, CrediFi found in its Q4 2016 Lending Spotlight.

tp_drop-in-overall-nyc-lending-graphics

One factor that appeared to contribute to the overall financing shift was a hit to NYC multifamily lending, which fell 23% in the same period – to $29 billion – amid regulatory caution over the
pace of multifamily lending and continued reports by senior loan officers of tightening multifamily
lending since early 2016.

Another factor was a financing drop in Q4 2016 in New York City. A month-by-month analysis indicates that Q4 featured the two months of the year with the least CRE financing in 8 NYC (by dollar amount), though the quarter ended on a lending high for the year.

NYC financing followed a somewhat similar but less pronounced trend in 2015, dipping to its lowest point in November before skyrocketing to its highest point as commercial real estate players rushed to close deals in the last month of the year.

The 2016 drop started earlier, however, and lasted for two months instead of one, possibly due to the uncertainty surrounding the Nov. 8 presidential election. October saw financing of $4.8 billion and November $4.3 billion, before rebounding to $8.8 billion in December.

To download the entire Lending Spotlight, click here.

 

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