Of the $2.6 trillion (10%) of outstanding commercial mortgages held by non-bank lenders and investors, $248.8 billion will mature in 2022, which is a 12% increase from the $222.5 billion that matured in 2021. This is according to the Mortgage Bankers Association‘s Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes.
“A large share of the balance of loans maturing this year and in 2023 are either shorter-term loans included in single-asset single-borrower (SASB) commercial mortgage-backed securities (CMBS), or are those made by investor-driven lenders,” observes Jamie Woodwell, MBA’s vice president of commercial real estate research. “Part of that concentration stems from the growth of those sectors in recent years. Another factor is that many of the longer-term loans held by life companies or Fannie Mae or Freddie Mac that would have been due have already been refinanced or were part of a property sale.”
The loan maturities vary significantly by investor group. Just $12.5 billion (2%) 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 2022. Life insurance companies will see $36.6 billion (6%) of their outstanding mortgage balances mature in 2022, and among loans held in CMBS, $109.6 billion (15%) will come due this year. Among commercial mortgages held by investor-driven lenders including mortgage REITs, debt funds and other investors, $90.1 billion (26%) will mature.
The dollar figures reported are the unpaid principal balances as of December 31, 2021. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here. This survey covers $2.59 trillion of commercial and multifamily mortgages held or insured by life companies, Fannie Mae, Freddie Mac, FHA, CMBS trusts and other non-bank lenders and investors. Banks and thrifts hold an additional $1.5 trillion in mortgages backed by income-producing properties which are not covered by the survey.
Read the report here.