MBA: 4Q Commercial/Multifamily Borrowing Up Record 79%
SAN DIEGO — The Mortgage Bankers Association said commercial and multifamily mortgage loan originations jumped by a record 79 percent in the fourth quarter from a year ago, and by 44 percent from the third quarter.
The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations said increases occurred across the board among nearly every major commercial real estate food group.
MBA released the survey here on Monday at its 2022 Commercial/Multifamily Finance Convention and Expo.
“The fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily properties,” said Jamie Woodwell, MBA Vice President of Commercial Real Estate Research. “Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales transaction volumes and low interest rates all fueled commercial and multifamily borrowing and lending activity that easily outpaced previous periods.”
Originations Up 79% in 4th Quarter
Increases in originations for hotel, office, industrial and retail properties led the overall jump in commercial/multifamily lending volumes from a year ago. MBA reported a 167 percent year-over-year increase in dollar volume of loans for hotel properties, a 122 percent increase for office properties, a 113 percent increase for industrial properties, a 109 percent increase for retail properties and a 57 percent increase for multifamily properties. Health care property loan originations decreased by 17 percent from a year ago.
Among investor types, dollar volume of loans originated for Commercial Mortgage-Backed Securities increased by 305 percent year-over-yea, followed by a 211 percent increase for investor-driven lenders, a 147 percent increase in commercial bank portfolio loans, a 63 percent increase for life insurance company loans and a 30 percent decrease in dollar volume for government-sponsored enterprises (Fannie Mae and Freddie Mac) loans.
4Q Originations Up 44% from 3rd Quarter
On a quarterly basis, fourth-quarter originations for industrial properties jumped 96 percent from the third quarter. MBA reported a 42 percent increase in originations for hotel properties, a 39 percent increase for office properties, a 35 percent increase for multifamily properties, a 6 percent increase in retail originations and a 2 percent increase for health care properties.
Among investor types, dollar volume of loans for CMBS increased 144 percent between the third and fourth quarters. Loans for commercial bank portfolios increased 59 percent, originations for investor-driven lenders increased 42 percent, loans for life insurance companies increased 18 percent, GSEs originations increased by 2 percent.
(Preliminary) 2021 Originations 67% Higher than 2020
A preliminary measure of commercial and multifamily mortgage bankers’ originations volumes shows activity in 2021 came in 67 percent higher than in 2020.
By property type, originations for industrial properties increased by 140 percent from 2020, retail properties increased by 73 percent, hotel properties increased by 71 percent, office properties increased by 66 percent, health care properties increased by56 percent and multifamily property originations increased 54 percent.
Among investor types, 2021 loans for investor-driven lenders increased by 225 percent, originations for CMBS increased by 167 percent, loans for commercial bank portfolios increased by 83 percent and loans for life insurance companies increased by 76 percent. GSE loans decreased by 17 percent.
In late March, MBA will release its Annual Origination Summation report for 2021 with final origination figures for the year.
To view MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations report, visit: https://www.mba.org/Documents/Research/4Q21CMFOriginationsSurvey.pdf.
