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Banks look ahead to renewed lending as commercial property loan portfolios improve

Declining levels of distressed debt feed optimism
M&T Bank foresees that an improvement in commercial real estate loan conditions will result in a lending increase in the second half of 2025. (Getty Images)
M&T Bank foresees that an improvement in commercial real estate loan conditions will result in a lending increase in the second half of 2025. (Getty Images)

The largest national and regional U.S. banks are steadily balancing their commercial real estate lending portfolios through fewer loan originations while seeing balances of distressed loans decline or moderate in growth.

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