Marketplace Morning Report What's with the quiet over commercial real estate lending?
Nov 10, 2025
Justin Ho, a Marketplace reporter specializing in commercial real estate and regional banking, dives into the impact of the pandemic on office attendance and lending trends. He reveals how big banks remain silent on commercial real estate risks, while regional banks feel the pressure. Ho discusses strategies lenders are using to assist struggling office owners, like loan extensions and concessions. Notably, he highlights that stress in commercial real estate is particularly evident in smaller cities and lower-income communities.
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CRE Strain Is Uneven Across Banks
- Commercial real estate stress is real but not uniformly acute across big banks and smaller lenders.
- Big banks have reduced exposure while regional banks remain more involved and concerned.
Offices Recovered Unevenly
- Office vacancies spiked after the pandemic because of remote work and population shifts to Sunbelt markets.
- Attendance rose in big coastal cities but smaller markets still show elevated vacancies and lingering stress.
Extend Loans To Buy Time
- Lenders are extending loans and offering better terms to give owners time to stabilize occupancy.
- Help borrowers avoid default so banks can wait for long-term value to recover in office buildings.