Record Level of Commercial and Multifamily Origination in 2017
A record volume of $530.1 billion of commercial real estate and multifamily loans were originated in 2017, according to new data from the Mortgage Bankers Association (MBA). This represents an eight percent increase from 2016.
In terms of property types, multifamily properties saw the greatest quantity of origination volume with $233.9 billion in loans, followed by properties in the office, retail, lodging, industrial and health care sectors. Commercial banks were responsible for $151.2 billion of the total, followed by the government-sponsored enterprises at $130 billion. First liens accounted for 96 percent of the total dollar volume closed.
“2017 was a very strong year, driven by solid property fundamentals, rising property values, low interest rates, and a ready supply of mortgage capital all contributing to extraordinarily attractive finance markets,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “We expect another robust year in 2018, even with the slight increase in interest rates, although perhaps not quite as robust as 2017.”