On March 6, FDIC Chairman Martin Gruenberg spoke at the Institute of International Bankers where he discussed the risks facing banks brought on by macroeconomic uncertainty. In discussing the trends that will likely affect banks’ lending businesses, he specifically addressed the increased credit risk associated with commercial real-estate (CRE) lending. Gruenberg cited the challenge to the office space sector as remote and hybrid work may permanently and materially reduce demand for office space. Measured by loan amounts, CRE and construction and development loans appeared to have grown in 2022. However, on an inflation-adjusted basis, lending in these sectors actually slowed in 2022. The slowing of CRE lending is notable in five major metropolitan areas with vacancy rates between 15-20%, an increase from 9.6% in March 2020.