By Andrew R. Johnson | The Wall Street Journal
Many U.S. banks are starting to see new growth from the old business of commercial real-estate loans.
From office buildings to shopping centers to warehouses to apartments, lending to developers and owners of such properties is on the rebound because of rising real-estate values and improved credit quality.
As of June 30, U.S. banks had $991.2 billion in total commercial real-estate loans, up 3.3% from a year earlier, according to research firm SNL Financial.
J.P. Morgan Chase JPM -0.76% & Co. on Friday reported that outstanding commercial-real-estate loans rose to $61.5 billion in the third quarter, a 12% increase from a year earlier. “The commercial-real-estate business continues to grow strongly,” J.P. Morgan Chief Financial Officer Marianne Lake said during a conference call with analysts, noting loans have increased “every month for the last 13 months.”
