Multifamily properties recorded the highest origination volume at $214.1 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care properties. First liens accounted for 97 percent of the total dollar volume closed. Commercial banks were the leading investor group for whom loans were originated, with $157.4 billion of the total, while the government-sponsored enterprises saw the second highest volume at $105.8 billion.
“For originations, 2016 was the third highest year on record, after 2007 and 2015,” said Jamie Woodwell, MBA’s vice president for commercial real estate research. “Borrowing and lending backed by multifamily properties made up the largest share of the market, and Fannie Mae and Freddie Mac drove much of that activity.”