Bank Failures Explained: Questions, Answers and How CRE Fits In

QUESTION FOUR

Let us take a step back for a moment and lay out the big picture of the CRE universe of lending. Banks typically account for about 42% of lending (the average share from 2017 to 2022), followed by the Agencies/GSEs (23%), CMBS (13%), financial firms (11%), insurance companies (9%) and other (3%). Thus, banks are the largest share by far. CRE Lending by Source Banks typically provide around 40% to 45% of total financing CRE LENDING BY SOURCE Banks typically provide around 40% to 45% of total financing

How important are community and regional banks to CRE?

50%

$1,000

ANSWER

40%

$800

Important.

30%

$600

20%

$400

Billions

10%

$200

0%

$0

2011

2017

2012

2021

2015

2013

2018

2016

2019

2014

2010

2022

2020

Banks Agency CMBS Financial

Insurance Private Other/Unknown Bank Share as a % of Total (RHS)

Source: Source: MSCI Real Capital Analytics

Source: MSCI Real Capital Analytics

/ 0

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Bank Failures Explained - Questions, Answers and How CRE Fits In

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