Commercial and multifamily mortgage originations increased 34 percent between the third and the fourth quarters of 2013, and were up 16 percent compared to the fourth quarter of 2012, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers’ Originations. MBA’s commercial/multifamily mortgage bankers’ originations index shows originations for the full year 2013 were 15 percent higher than in 2012.
“Commercial and multifamily mortgage borrowing and lending ended 2013 on a particularly strong note,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “The fourth quarter marked the highest volume of mortgage originations since 2007, as all the major investor groups increased their activity. Initial indications are that 2013’s volume was up 15 percent from 2012—putting 2013 originations in the neighborhood of $280 billion in closed loans.”
The 16 percent overall rise in commercial/multifamily lending volumes, when compared to the fourth quarter of 2012, was driven by the increase in originations for health care, retail and office properties. The increase included a 70 percent boost in the dollar volume of loans for health care properties, a 43 percent increase for retail properties, and a 27 percent increase for office properties. Originations for multifamily properties were flat; originations for hotel properties fell nine percent; and originations for industrial properties recorded a 30 percent decline when compared to the fourth quarter of 2012.
Among investor types, the dollar volume of loans originated for commercial bank portfolios increased by 54 percent from last year’s fourth quarter. There was a 40 percent increase for life insurance companies, a 15 percent increase for CMBS and a 43 percent decrease in dollar volume of loans originated for the government-sponsored enterprise (GSE) loans.
Fourth quarter 2013 commercial and multifamily mortgage originations were 34 percent higher than in the third quarter. Compared to the third quarter, fourth quarter 2013 originations for multifamily properties increased 44 percent. There was a 34 percent increase in originations for retail properties, a 24 percent increase for hotel properties, a 19 percent increase for industrial properties, a 19 percent increase for healthcare properties, and a nine percent increase for office properties from the third to the fourth quarter 2013.
Among investor types, between the third and fourth quarters of 2013, loans for GSEs increased 48 percent, loans for commercial bank portfolios increased 44 percent, originations for CMBS increased 35 percent, and loans for life insurance companies increased by eight percent.
Commercial and multifamily mortgage origination volumes during 2013 were 15 percent higher than originations during 2012. Compared to 2012, originations for health care properties increased 35 percent. There was a 22 percent increase for office properties, a 13 percent increase for multifamily properties, a 10 percent increase for hotel properties, a four percent increase for retail properties, and an 11 percent decrease for industrial properties.
Among investor types, 2013 versus 2012, loans for CMBS increased 33 percent, loans for commercial bank portfolios increased in 32 percent, originations for life insurance companies increased 25 percent and loans for GSEs decreased 18 percent 2013 versus 2012.