Bank of China is emerging as one of the largest non-US banks investing in the troubled US commercial property sector, and its local bankers are scouring the market for new deals.

With most US banks paralysed and the market for commercial mortgage -backed securities frozen, foreign banks are now providing more than 60 per cent of all debt financing for commercial real estate, according to data from CB Richard Ellis.

The willingness of these new players to provide debt goes some way to filling a vacuum and providing hope that the worst of the downturn, at least in big US markets, may be over. In so doing, Bank of China and other foreign lenders are taking advantage of underwriting terms and spreads that are particularly attractive today, analysts say.