Pursuits
Lenders Are Getting Choosier When It Comes to Risky Real Estate Deals
- `We're getting late in the cycle,' Wells Fargo executive says
- Landlords dealing with overbuilding, declining stock prices
A crane stands over a construction site in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Lenders are getting stingier when it comes to funding risky U.S. real estate developments, putting pressure on landlords in need of fresh funding to keep their projects afloat.
Banks are proceeding with caution as the specter of slowing economic growth rattles financial markets and shakes investor confidence in a six-year recovery that’s helped lift property values to records. Lenders are going to be more selective and discriminating as the year progresses, said Mark Myers, the head of the commercial real estate business at Wells Fargo & Co., the largest U.S. commercial-property lender.