Norwegian banks' corporate loan exposure is highest in the commercial real estate market. Over the past 40 years, lending to the commercial real estate sector has played an important role in causing bank losses. Commercial real estate prices fluctuate in pace with the business cycle. Prices rose substantially before the banking crisis at the end of the 1980s and before the financial crisis in 2008. This commentary provides an overview of the Norwegian commercial real estate market, banks' exposures and possible factors driving prices. The commentary concludes with an assessment of credit risk developments.