MBA: Commercial Borrowing Increased Year-Over-Year

Commercial and multifamily loan originations in the second quarter of 2017 were up 20% year-over-year from the same time last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Additionally, the survey found that originations rose 28% from the first quarter of 2017.

“Borrowing and lending backed by commercial and multifamily properties has been strong the first half of this year,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  “Reflecting broad industry trends, borrowing backed by industrial properties increased by two-thirds compared to the first half of 2016, while borrowing backed by retail properties dropped by one-sixth.  As was the case during the first quarter, commercial/multifamily mortgage bankers’ originations increased despite a slowdown in the volume of sales transactions.”

Higher originations for industrial and office properties helped to lead the year-over-year increase in commercial and multifamily properties. Dollar volumes for industrial properties rose 91% year-over-year, while office properties saw an increase of 33% for the same time period. Additionally, originations for multifamily properties, hotel properties and health care properties rose 21%, 14% and 7%, respectively.

Hotel properties were a leading factor in the increase in originations from the first quarter of 2017, rising 139%. There was also a 39% increase in originations for industrial properties, a 39% increase for office properties, a 34% increase for retail properties and a 25% increase for multifamily properties from the first quarter of 2017.