Commercial real estate loan origination in Chicago declined 13% year-over-year, dropping to $11 billion in the first six months of 2017, CrediFi found in its Q2 lending report for Chicago.
Wintrust Financial Corp., the top Chicago lender in Q2, also saw its originations head downward year-over-year, declining 12% compared with Q2 2016.
The outlook isn’t all bad in the Chicago commercial real estate market, though.
A recent study commissioned by the Building Owners and Managers Association of Chicago highlighted strong growth in the downtown office sector, with office vacancy decreasing by 34% between 2012 and 2016 and rents increasing by 23.5%.
The number of Fortune 500 companies doubled during those years, to 12, and the tech sector saw strong growth as well, said the report, which was conducted by JLL.
This drop in lending isn’t unique to Chicago, with New York City originations flat year-over-year in the first six months of 2017 after having dropped 17% from 2015 to 2016. Big Apple origination likely would have fallen in Q2 as well had it not been for several very large loans that quarter.