MBA Chart of the Week: Commercial Real Estate Borrowing and Lending

Commercial real estate borrowing and lending started 2016 similarly to 2015. First-quarter commercial and multifamily mortgage loan originations overall were essentially flat compared to the same period last year and–in line with the seasonality of the market–38 percent lower than fourth-quarter 2015, MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations said.

Among investor types, the dollar volume of loans originated for commercial bank portfolios increased by 44 percent year-over-year. There was a 1 percent year-over-year decrease for life insurance company loans, a 19 percent decrease in the dollar volume of commercial mortgage-backed securities loans and a 22 percent decrease in Fannie Mae and Freddie Mac loans. Disruptions in the broader capital markets pushed originations for CMBS down.  

Across property types and investor types, changes in regulation and broader market conditions could affect originations during the remainder of the year.

A rise in originations for retail and office properties were a net positive for commercial/multifamily lending volumes compared to the first quarter of 2015. The first quarter saw a 44 percent increase in the dollar volume of loans for retail properties, an 18 percent increase for office properties, a 2 percent increase for multifamily properties, a 3 percent increase for hotel properties, a 56 percent decrease in industrial property loans, and a 57 percent decrease in health care property loans.

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(Jamie Woodwell is vice president of commercial/multifamily research and economics with the Mortgage Bankers Association. He can be reached at