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Top Five Current CRE Lending Industry Issues

A series of local construction lender risk management roundtables in 2017 highlighted the five most important issues and trends affecting the CRE lending industry looking ahead to 2018.

In an already stringent lending environment, banks further tightened standards for commercial real estate loans this year. CRE transactions and lending have slowed, along with new multifamily construction, though the pace of office and industrial development has increased. Signs point to a flattening of growth in 2018. Lending patterns may shift towards secondary and tertiary markets, more manageable small and mid-size deals, a focus on specific sector hotspots (such as multifamily housing) and a pullback in risk tolerance.

The Construction Lender Risk Management (CLRM) Roundtable forum was created to bring together industry leaders with the aim of advancing construction lending practices across the industry through reflection, collaboration, networking and shared learning. At a series of local 2017 CLRM roundtable gatherings across the United States, a leading consortium of lenders, construction subcontractors, and due diligence professionals offered their thoughts on construction trends in their respective areas, ongoing challenges facing the industry as a whole, and the most important things to know for a changing CRE landscape.

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