U.S. commercial banks are changing some aspects of the way they treat borrowers, especially real estate borrowers. These changes are aimed at improving banks’ ability to make profits on loans, or to obtain capital in other ways.
The location of new commercial real estate will be determined by how fast the economy recovers, how additional commercial development fits future residential strategies, and how decisions about growth are made. The U.S. economy will recover slowly.
This column is about relationships between commercial real estate and money. Under current recession conditions, the outlook for commercial properties will be greatly influenced by the amount of federal funds used to stimulate business and consumer spending and bolster jobs.