Major U.S. banks are re-entering the commercial real estate lending market after years of retreat.
Lenders had largely avoided the sector in recent years, as investors and analysts warned of an impending wave of defaults.
The shift signals a renewed appetite for risk among top financial institutions.
Banks are now extending loans for office buildings, retail spaces, and other commercial properties.
This reversal follows a period of tight credit conditions that had frozen much of the market.
The move aims to capture higher yields available in the commercial real estate sector.
Regulatory pressures had previously kept many big banks on the sidelines.
Market conditions have stabilized enough to encourage a cautious return.
