Report says commercial real estate has a bright future ahead

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According to the report, the value of gross loans and leases will climb 5.8% per year as the projected GDP growth in 2026 boosts demand for commercial properties. CRE lenders are projected to benefit from the continued growth forecast for residential and non-residential investment in structures. Commercial and industrial mortgage lending are also anticipated to advance based on rising equipment investment as manufacturing output continues to expand.

“Increases in disposable personal income will bolster personal spending and drive demand for consumer financing,” the group said. “Inflation during the forecast period will also add to growth in the value of gross loans and leases.”

The scope of the report covers commercial banks, the commercial banking subsidiaries of banks or financial holding companies, and the savings institutions (also known as savings and loans, or thrifts) insured by the Federal Deposit Insurance Corporation (FDIC).