Skip to content
Wealth

Biggest US Banks Scale Back on Property Lending as Rates Climb

After a record first half of 2022, the biggest US banks have become more selective on commercial real estate financing deals.

Big US banks are pulling back on some commercial real estate financing deals.

Big US banks are pulling back on some commercial real estate financing deals.

Photographer: Amir Hamja/Bloomberg

Banks including Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. have pulled back on financing for offices and other commercial real estate following a record burst of lending in the first half of this year. 

The biggest US lenders — which also include Morgan Stanley and Goldman Sachs Group Inc. — have become more selective and stiffened borrowing terms while issuing fewer new commercial property loans, according to people familiar with the matter who asked not to be identified citing private information.