Tag: Office Lending

Why Class C Office Loans Are Better Than Class A

The Credit Risk Of Office Lending

Given our position mid-business cycle, it is time for banks to consider decreasing their lending to Class A office space and increasing their exposure to Class C space. This is the opposite of what most banks are doing and the concept of going “down market” is counterintuitive for most bankers at this stage of the economic cycle. After all, don’t you want to lend in the highest quality properties in a downturn? The answer is no and in this article we look at the data plus the logic behind shifting your commercial portfolio to a lower class and more worn properties.

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