Commercial real estate data from the first quarter shows ‘the natural effects of the turn of the real estate cycle,’ the Mortgage Bankers Association (MBA) concludes in its recently released Commercial Real Estate/Multifamily Finance Quarterly Data Book.
According to the MBA, broader economic indicators improved, albeit very slightly, in the first quarter. The positive trends, however, have had only a modest impact on the commercial real estate market, where fundamentals have stabilized and are showing signs of mending.
‘Transaction volumes are picking up, and pricing and loan performance are showing initial signs – inconsistent though they are – of improvement," the MBA says. "Any pickup in economic growth will speed the healing; any slowdown will draw out the cycle."
A constriction in new supply, the MBA says, has helped stabilize the situation. The arc of the market recovery will depend on the rate of economic growth and the reaction of investors and developers to market changes, the MBA adds.
The Data Book, which is accessible here, provides analysis of first-quarter property sales, originations, delinquencies and mortgage debt outstanding.
