NYC commercial lending falls 49% over past 12 months

NYC commercial lending 12-month yoy PincusCo

NYC commercial lending 12-month yoy PincusCo

New York City commercial lending fell nearly 50 percent over the past 12 months that ended August 31 compared with the prior 12 month period, impacted by sharply rising interest rates and lower commercial properties values.
Over the past 12 months, lenders provided loans totaling $56.8 billion, compared with $110.5 billion in the prior 12-month period, a decline of 49 percent.

The analysis covers loans of $5 million and up recorded in New York City property records that were new loans, construction loans, refinance loans or similar transactions. The analysis only credits the original lender, not the bank that buys the loan through an assignment. In the cases of syndicated loans, PincusCo relied on news reports. The data has not been vetted with the lenders.

The top lenders reshuffled, with firms like New York Community Bank, now known as Flagstar Bank, pulling back on lending. And other banks such as Signature Bank, which was taken over by the FDIC, stopped lending all together in 2023, although they were still lending through the first quarter of 2023, and so continue to show loans in the period from September 1, 2022 to August 31, 2023 totaling nearly $1.8 billion.

Most of the top ten lenders from the year ago period, September 1, 2021 to August 31, 2022, were still significant lenders in the more recent 12-month period, but their lending was down significantly. For example the top lender in the year ago period was JPMorgan Chase with $9.1 billion in loan. In the 12 months ending August 31, that had fallen to $2.8 billion, according to PincusCo data. Its total share of lending also declined from about 8 percent to about 5 percent.

Other banks increased their lending, for instance M&T Bank grew from about $585 million in 24 loans in the year-ago period to $1.4 billion and 33 loans in the more recent period. The largest M&T Bank loan was a $425 million construction loan to Lloyd Goldman’s BLDG Management for an 818-unit development at 42-02 Orchard Street in Long Island City, Queens.

NYC commercial lending past 12 months YOY comparison


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