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Commercial and Multifamily Mortgage Debt Rises by $21.8 Billion in Q4

The Mortgage Bankers Association (MBA) released its fourth quarter 2012 Commercial Real Estate/Multifamily Finance Quarterly Data Book. The report includes a summary of major trends and detailed charts and tables that provide current and historical information on the economy and commercial/multifamily real estate markets. Among the findings covered in the fourth quarter Data Book:
►Commercial and multifamily mortgage debt outstanding increased by $21.8 billion, or 0.9 percent, in the fourth quarter of 2012, as all four major investor groups increased their holdings.
►The U.S. economy, as measured by the real gross domestic product, grew by 0.4 percent during the quarter.
►Office vacancy rates fell from 17.2 percent in the third quarter to 17.1 in the fourth (down from a cycle high of 17.6 percent). Retail vacancies dropped from 10.8 percent to 10.7 percent (down from a cycle high of 11.1 percent). The multifamily vacancy rate fell from 4.7 percent in the third quarter to 4.5 percent in the fourth (down from a cycle high of eight percent).
►Commercial and multifamily mortgage originations were 49 percent higher than during the third quarter of 2012 and 49 percent higher than during the fourth quarter of 2011.
►The fourth quarter saw the largest increase in commercial and multifamily mortgage debt outstanding since 2008. Bank-held commercial mortgages increased by the largest amount since 2008. The balance of loans held in CMBS rose by the most since 2007 and the balances of loans held by life companies and held or guaranteed by Fannie Mae, Freddie Mac and FHA continued their multi-year increases.
►Delinquency rates continued to decline for commercial and multifamily mortgage loans in the fourth quarter of 2012.
MBA’s Quarterly Data Book compiles the most up-to-date information on topics of interest to commercial/multifamily real estate finance industry professionals, including trends in the economy, property sales, originations, delinquencies and mortgage debt outstanding.
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