Commercial and multifamily mortgage originations in the U.S. increased 3% in the third quarter compared with the second quarter and increased 12% compared with the same period last year, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
‘Commercial mortgage borrowing and lending continued to grow during the third quarter,’ says Jamie Woodwell, the MBA's vice president of commercial real estate research. ‘Every major investor group and property type except one has seen increases in year-to-date lending volumes, and we expect year-end numbers to continue that trend.’
Increases in originations for retail and office properties led the overall increase in commercial/multifamily lending volumes when compared with the third quarter. The increase included a 39% increase in the dollar volume of loans for retail properties, a 17% increase for office properties, an 11% increase for multifamily properties, a 10% increase for industrial properties, a 9% decrease in hotel property loans and health care property loans decreased 30% year over year.
Among investor types, the dollar volume of loans originated for commercial bank portfolio loans increased by 93% from last year's third quarter. There was an 18% increase for life insurance company loans, a 3% decrease for government-sponsored enterprise (GSE) loans and an 8% decrease for commercial mortgage-backed securities (CMBS) loans.
Originations for office properties in the third quarter increased 37% compared with the second quarter. There was a 27% increase in originations for retail properties, a 5% increase for health care properties, a 1% decrease for industrial properties, an 8% decrease for multifamily properties and a 29% decrease for hotel properties from the second quarter.
Among investor types, between the second and third quarter, the dollar volume of loans for CMBS increased 22%, loans for life insurance companies increased 13%, originations for commercial bank portfolios increased 9% and loans for GSEs decreased by 28%.
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