Key facts
- US banks increased their commercial real estate (CRE) portfolios by 3% in the first quarter.
- Total CRE exposure across 4,336 US banks stood at $2.61 trillion as of March 31.
- This increase of $74.9 billion is the largest proportional rise since Q2 2023 and the biggest absolute increase since Q2 2022.
- Exposure above regulatory thresholds has decreased.
US banks significantly increased their commercial real estate (CRE) portfolios in the first quarter, with exposure growing by 3% to $2.61 trillion. This marks the fastest pace of expansion for the asset class in nearly three years, with an absolute increase of $74.9 billion. The growth occurred while exposure above regulatory thresholds reportedly receded, suggesting a potential de-risking alongside portfolio expansion.