Commercial/Multifamily Market Closes $200 Billion-Plus in 2012

Commercial and multifamily mortgage bankers closed $244.2 billion of loans in 2012 according to the Mortgage Bankers Association’s (MBA) 2012 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation. Loans originated for Fannie Mae, Freddie Mac and FHA in 2012 collectively totaled $77.6 billion, and represented the leading investor group. Commercial bank and savings institutions saw the second highest volume, $56.9 billion and were followed by life insurance companies and pension funds; CMBS issuers; REITS, mortgage REITs and investment funds; and credit companies and specialty finance firms. In terms of property types, multifamily properties saw the highest origination volume, $103.2 billion, followed by retail properties, office buildings, industrial, hotel/motel and health care. First liens accounted for 98 percent of the total dollar volume closed. Driven in part by greater coverage, the reported dollar volume of commercial and multifamily mortgages closed in 2012 was 33 percent higher than the 2011 volume. Among repeat participants in the survey, the dollar volume of closed loans rose by 15 percent. “The commercial and multifamily mortgage market saw solid growth during 2012,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “The multifamily market continued to be a major driver of activity, and nearly every investor group increased their activity from the year before. With a continuation of low interest rates and improving property markets, originations are on track for continued growth this year.”