Economists' Outlook

Housing stats and analysis from NAR's research experts.

REALTORS® Report Local Banks as Largest Source of Finance Capital

  • Lending conditions continue to remain tight for commercial real estate investments. This is especially pertinent for small businesses and investors looking for properties in secondary and tertiary markets.
  • In the wake of the post 2008-09 recession shakeout, large banks have been reluctant to underwrite commercial real estate investments.
  • According to the 2012 Commercial Lending Survey, large national banks accounted for only 21 percent of commercial deals.
  • In contrast, local banks provided the bulk of financing capital for commercial deals, with 64 percent of closed sales.
  • Private investors and regional banks were the other major sources of funding, with 45 percent and 44 percent of sales, respectively.
  • The Small Business Administration provided funding for 29 percent of closed transactions.

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