Commercial and multifamily mortgage loan originations were 119% higher in Q3 compared to last year, increasing 19% from the second quarter, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
– All property types increased in Q3 in commercial/multifamily lending volumes YoY.
– The third quarter saw an 866% year-over-year increase in the dollar volume of loans for hotel properties, a 317% increase for retail properties, a 156% increase for industrial properties, a 105% increase for multifamily properties, a 102% increase for office properties and a 45% increase for health care property loan originations.
– Among investor types, the dollar volume of loans originated for investor-driven lenders increased by 319% YoY.
“Overall commercial real estate borrowing and lending are running at high levels, but there continues to be an important differentiation by property type,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research, in a statement. “Borrowing hit an all-time quarterly high during the third quarter, driven by strong or improving market fundamentals, higher property values, low interest rates and solid mortgage performance. Borrowing and lending backed by industrial and multifamily properties are each running at a record annual pace. And while year-to-date office and retail lending are each up significantly from last year, both remain below 2019 levels.”
Woodwell continued, “Among capital sources, nearly every major group—including CMBS, banks, life companies and investor-driven lenders—is lending well above 2020 levels, with life companies and investor-driven lenders also exceeding their 2019 year-to-date volumes. The one exception is the GSEs (Fannie Mae and Freddie Mac), whose conservator limited their loan purchase volumes this year.”