U.S. Capital Markets Glide Path to Clearer Skies

Banks are an important lender for CRE

Bank Originations as Share of Total CRE

Share of CRE Debt Outstanding* ~ of $4.5 Trillion in Total

15% 20% 25% 30% 35% 40% 45% 50%

Top 25 Banks "Large" 12%

Others 12%

CMBS, CDO and ABS 13%

Regional Banks 14%

Commuity Banks 10%

Life Insurance Cos 15%

Small Banks 3%

Agency, GSE Portfolio & MBS 21%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

• Banks typically account for around 40% to 45% of total CRE financing in any given year. • Throughout 2022, banks played an even larger role in CRE financing as CMBS and GSE activity retreated. • Banks also account for about 40% of outstanding income producing debt throughout the CRE universe which totals $4.5 trillion. • So, any conversation on broader CRE debt and lending should start with a deeper dive into the conditions facing banks leading up to today and heading into the next chapter.

20

Source: MSCI Real Capital Analytics, Mortgage Banker’s Association, Cushman & Wakefield Research. Note: *Figures based on CRE debt on income-producing properties.