The increase was driven in large part by skyrocketing multifamily originations for Fannie and Freddie, according to Jamie Woodwell, MBA vice president of commercial real estate
“The year-end momentum from 2014 carried over into the first quarter of 2015, with year-over-year growth in lending for every major property type,” Woodwell said. “Multifamily lending was a key driver of first-quarter originations, and the GSEs drove multifamily. The GSEs’ multifamily originations increased by 306% compared to Q1 2014, marking their second-highest quarter on record, while multifamily originations for other capital sources appear to have remained flat or declined.”
The increase was also driven by a spike in industrial originations, according to the MBA. Originations for industrial properties were up 269% over Q1 of 2014. Multifamily properties were up 71% overall. Office properties saw a 53% increase, hotel properties a 51% increase, and retail properties a 5% increase. Healthcare properties, meanwhile, were unchanged from Q1 of 2014.
Overall originations, meanwhile, were down from the fourth quarter of 2014. First quarter originations for healthcare properties dropped 62% from Q4, while retail properties dropped 57%. Hotel properties saw a 33% drop, multifamily properties dropped 31%, and office properties 25%. Industrial property originations were down 127% from the fourth quarter.
Commercial and multifamily mortgage originations jumped 49% year over year in the first quarter, according to a new survey by the Mortgage Bankers Association.