NYC CRE lending tumbles in Q1 2023

In the first quarter of the year, the dollar volume and the number of loan transactions fell sharply for New York City commercial real estate as lenders and borrowers digested the continuing impact of high interest rates as well as the failure of Signature Bank last month.
The dollar volume was down almost 50 percent from $20.8 billion in the first quarter of 2022 to $10.8 billion in the first quarter of this year.

The largest loan last month was given by Wells Fargo to TF Cornerstone for the construction of two buildings in Long Island City.

The lenders changed radically as well. In the first quarter of 2022, JPMorgan Chase provided 87 loans totaling $1.95 billion and was the top lender that quarter. But last quarter it only made or refinanced 12 loans totaling $142 million.

Even Signature Bank, which the federal government took over last month, provided 10 loans valued at $216 million in January and February. Signatures last loan of $5 million and up in New York City was a $7.7 million refinance loan given on February 17.

Despite the low first quarter volume, the dollar volume of loans ticked up in March indicating a rebound may come for the second quarter.