Marketplace All-in-One What's with the quiet over commercial real estate lending?
Nov 10, 2025
Justin Ho, a Marketplace reporter focusing on commercial real estate and banking issues, delves into the current state of CRE lending post-pandemic. He highlights how work-from-home trends and migration have led to increased office vacancies. While big banks pull back, regional and community banks are stepping up with loans and concessions to avoid defaults. Ho also discusses strategies to make office spaces more appealing. Additionally, he sheds light on how the struggles in CRE are reflecting broader economic challenges in lower-income communities.
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CRE Pain Tied To Offices And Migration
- Office-focused commercial real estate has struggled since the pandemic due to remote work and population shifts.
- Big banks cut exposure while regional banks still carry more CRE risk and are handling stress differently.
Banks See Normalization Not Collapse
- Lenders describe the sector as 'normalizing' rather than collapsing into crisis.
- Banks are reducing CRE lending but avoiding panic by adjusting exposure and loan terms.
Help Borrowers To Prevent Defaults
- Lenders are extending loans or offering more favorable terms to avoid defaults and buy time.
- Improving buildings and offering tenant allowances can help attract or retain tenants.