Major U.S. banks are increasing commercial real estate (CRE) lending following a two-year pullback. Data from the first quarter of 2026 shows CRE loan originations surged 80% year-over-year. Lenders indicate that stabilizing property values suggest the market downturn has ended.
Nearly $900 billion in commercial mortgages will mature in 2026. This volume creates massive refinancing demand across the sector. Increased competition among lenders is currently driving more favorable terms for borrowers.
Recovery remains uneven across different property types. Large banks are expanding credit specifically for stabilized properties. Conversely, these institutions continue to reduce their exposure to new construction projects.