Banks Still Favor Commercial Real Estate

A survey of bank real estate loan officers concludes that banks' appetite for commercial real estate loans remains strong despite higher interest rates.The survey, conducted by Bridger Commercial Funding, found that loan officers believe that despite higher rates, commercial real estate credits will remain relatively healthy with no increases in delinquency and default rates anticipated. Three-quarters of respondents expect rent and occupancy levels to remain steady in 2006. Almost 60% said they expect capitalization rates to rise in 2006, and 37% think cap rates will stabilize.