“A number of banks said around the end of the summer that they would not be lending into commercial real estate through the rest of 2023,” said Michael Overmyer, a banking attorney who is a partner at Lippes Mathias LLP.

“Some had taken on a lot of commercial real estate exposure, and some were trying to downsize the amount of their commercial real estate exposure and were worried about where the market’s headed,” Overmyer said. “It is the first time I’ve seen since 2008 banks full on saying ‘We’re not doing any new commercial real estate loans for the next five months at a minimum.’”