MBA: 20% of Commercial and Multifamily Mortgage Balances Mature in 2024 #MBACREF24
SAN DIEGO–Twenty percent ($929 billion) of the $4.7 trillion of outstanding commercial mortgages held by lenders and investors will mature in 2024, a 28% increase from the $729 billion that matured in 2023, according to the Mortgage Bankers Association’s 2023 Commercial Real Estate Survey of Loan Maturity Volumes, released here at the 2024 Commercial/Multifamily Finance Convention and Expo.
“The lack of transaction and other activity last year, coupled with built-in extension options and lender and servicer flexibility, has meant that many loans that were set to mature in 2023 have been extended or otherwise modified and will now mature in 2024, 2026, 2028 or in other coming years,” said Jamie Woodwell, Head of Commercial Real Estate Research at MBA. “These extensions and modifications have pushed the amount of CRE mortgages maturing this year from $659 billion to $929 billion.”
Woodwell continued, “commercial mortgages tend to be relatively long-lived, spreading maturities out over several years. Volatility and uncertainty around interest rates, a lack of clarity on property values, and questions about some property fundamentals have suppressed sales and financing transactions. This year’s maturities, coupled with greater clarity in those and other areas, should begin to break the logjam in the markets.”
The loan maturities vary significantly by investor and property type groups. Just $28 billion (3%) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in 2024. Life insurance companies will see $59 billion (8%) of their outstanding mortgage balances mature in 2024. By contrast, $441 billion (25%) of the outstanding balance of mortgages held by depositories, $234 billion (31%) in CMBS, CLOs or other ABS and $168 billion (36%) of the mortgages held by credit companies, in warehouse or by other lenders will mature in 2024.
By property type, 12% of mortgages backed by multifamily properties will mature in 2024, as will 17% of those backed by retail and 18% for healthcare properties. Among loans backed by office properties, 25% will come due in 2024, as will 27% of industrial loans and 38% of hotel/motel loans.
The dollar figures reported are the unpaid principal balances as of Dec. 31, 2023. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here.
For members of the media, to review the report, contact Falen Taylor at ftaylor@mba.org.
To learn more or to purchase a copy of the report, visit: http://www.mba.org/loanmaturityvolumes
