First quarter commercial, multifamily originations up 12%

by Steve Randall15 May 2019

The first quarter of 2019 has continued where 2018 ended for commercial/multifamily originations.

Figures from the Mortgage Bankers Association show a 12% increase year-over-year. They were down 34% from Q4 2018, in line with seasonal trends.

"The momentum seen in 2018's record year of borrowing and lending continued in the first quarter of this year," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "First quarter volumes were higher for nearly every property type, and double-digit growth in loan volume for Fannie Mae and Freddie Mac led the increase among capital sources. Low interest rates and strong property values continue to make commercial real estate an attractive market for borrowers."

The dollar volume of industrial originations surged 75% year-over-year and there were also strong gains for health care (41%) and hotels (14%). Retails and multifamily both gained 9%.

Among investor types, the dollar volume of loans originated for the GSEs - Fannie Mae and Freddie Mac - increased by 14% year-over-year. Life insurance company loans increased 7%, commercial bank portfolios increased 6%, while loans originated for Commercial Mortgage Backed Securities (CMBS) decreased 4%.