Third-quarter 2010 commercial and multifamily mortgage loan originations were 32% higher than during the same period last year and 15% higher than during the second quarter, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
The increase was driven by lending activity in the multifamily and industrial sectors. When compared to the third quarter of 2009, the increase included a 129% increase in loans for industrial properties, a 37% increase in loans for multifamily properties, a 36% increase in loans for office properties and a 19% increase in loans for retail properties. Hotel and healthcare property originations fell 20% and 46%, respectively.
‘Today's low interest rates make for a very attractive borrowing environment,’ explains Jamie Woodwell, the MBA's vice president of commercial real estate research. ‘However, relatively low levels of loan maturities and a slow, albeit rising, sales market continued to dampen overall commercial mortgage demand.’
Origination volumes for life companies and Fannie Mae and Freddie Mac were relatively strong during the third quarter; originations for commercial mortgage-backed securities (CMBS) remained very low in absolute terms but picked up considerably on a percentage basis; and commercial mortgage borrowing at commercial banks fell on both a quarter-over-quarter and year-over-year basis, the MBA reports.
Among investor types, loans for conduits for CMBS saw an increase of 940% compared to last year's third quarter.
The entire MBA report can be found here.
SOURCE: Mortgage Bankers Association