I came upon the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Origination. It indicated that the commercial/multifamily housing sector has seen a dramatic uptick in activity, with origination rising 52% in the second quarter and jumping 107% from the same period last year. According to the MBA, the 107% year-over-year increase was fueled by origination activity for all property types, including a 141% increase in loans for healthcare properties, a 125% spike in loans for hotel properties, a 116% increase in loans for retail properties and a 114% ascension in loans for multifamily properties.
The MBA adds that among investor types, the quarterly increase in loans for conduits for commercial mortgage-backed securities was 210% compared to the first quarter, while loans for commercial bank portfolios saw an increase in loan volume of 41%. The quarterly level in origination for life insurance companies increased 37%, and loans for government-sponsored enterprises were up 20%.
Taking into consideration that property values, interest rates, job growth, consumer spending, and other economic trends drive demand for commercial real estate, and taking into consideration where we are currently, in my opinion, these figures may be inaccurate. So just how great is the demand for commercial real estate? Click the link for MBA’s survey and let us know what you think.
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