WASHINGTON, D.C. — The total amount for commercial and multifamily mortgages originated in the third quarter is up 119 percent compared to a year ago, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations released on Thursday. The third-quarter volume is also up by 19 percent from second-quarter 2021.
All property types showed an increase in year-over-year originations. The highest dollar volume hike was for hotel loans, with an 866 percent increase. Following that figure was a 317 percent increase for retail loans, 156 percent increase for industrial properties, 105 percent increase for multifamily properties, 102 percent increase for office properties and a 45 percent increase for healthcare property loan originations.
“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,” says Jamie Woodwell, MBA’s vice president of commercial real estate research. “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.”
The dollar volume of loans originated for investor-driven lenders (such as REITs, specialty finance and credit companies) increased the most among borrower categories with a 319 percent hike year-over-year. Additionally, there was a 232 percent increase for commercial bank portfolio loans, 175 percent increase for life insurance companies, 125 percent increase in the dollar volume of commercial mortgage-backed securities (CMBS) loans and a 15 percent increase for government-sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac.