Commercial Lending up Big in 2013, Led by Multifamily

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Mortgages for multifamily properties outpaced other
commercial and multifamily mortgage originations in 2013 the Mortgage Bankers
Association (MBA) said today.  Those
loans accounted for $136.9 billion in loan volume during the year out of a
total of $358.5 in loans originated by commercial and multifamily mortgage
bankers.  The second most active property
type was office buildings followed by retail properties, hotel/motel, industrial,
and health care.  Ninety-seven percent of
the dollar volume of loans were first mortgage liens.

The total reported loan volume increased 47 percent
from what was reported in 2012, however MBA said that a growth in its
survey coverage accounted for part of the growth in loan volume.    Among
the survey’s repeat respondents the dollar volume of lending increased by 22
percent
.

MBA’s 2013 Commercial Real
Estate/Multifamily Finance Annual Origination Volume Summation notes that commercial
banks and savings institutions
were the leading investor group, accounting for $100.5
billion of the total loan volume.  This
sector was followed by CMBS issues with $79.8 billion, and then by life
insurance companies and pension funds, Fannie Mae, and REITS.

“Improving property markets and a strong appetite among lenders led to a very
active year in commercial real estate finance,” said Jamie Woodwell, MBA’s Vice
President of Commercial Real Estate Research.  “Multifamily rental
properties drew the most financing, and banks and thrifts were the largest
source of commercial real estate lending.  Despite the fact there are
fewer maturing loans in need of refinancing this year, originations should
continue to be buoyed by higher property values, rising property incomes and
still low interest rates.”

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