Commercial real estate lending fell for the first time in two years last month amid tight credit conditionsDebt on commercial property fell to $5.44 trillion in June, driven by a large drop in multifamily lending.
Outstanding commercial real estate debt dropped to $5.44 trillion in June, marking the first drop in commercial real estate lending recorded in two years, according to Refinitiv data cited by Capital Economics.
Multifamily property debt fell by $21.6 billion last month, the research firm said.
Still, commercial property debt saw sluggish growth in June, increasing by just $7.4 billion last month.
Commercial real estate prices could plunge as much as 40% from their peak, Morgan Stanley previously estimated, which would mark an even more severe crash than what was seen in the 2008 financial crisis.
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