Commercial Banks, CRE Exposure, and Borrower Strategy in November 2025

As November 2025 arrives, new data show that banks still hold a substantial volume of commercial real estate loans, even after several years of heightened scrutiny. Some regional and community institutions remain heavily exposed to CRE, while larger banks have adjusted portfolios and tightened standards. For borrowers, this landscape requires nuance. Banks are neither universally “out” of CRE nor indiscriminately chasing volume; instead, they are differentiating carefully by sponsor quality, asset type, and geography. Xavier at CRELoans.us counsels clients to understand each lender’s risk posture and sweet spot. Matching the right asset to the right balance sheet can unlock competitive terms even in a market where headlines still focus on stress and delinquency statistics.