The commercial mortgage industry had an excellent year in 2015 with commercial and multifamily mortgage originations increasing by 35% from the third and fourth quarters of 2015 and by 19% from the fourth quarter of 2014, according to data from the Mortgage Bankers Association.
“In fact, the fourth quarter was the fourth highest quarter for borrowing and lending on record,” according to Jamie Woodwell, MBA’s Vice President of commercial real estate research. “In terms of overall borrowing and lending volumes, 2015 as a whole was likely second only to 2007.”
The MBA won’t be releasing its Annual Origination Summation report for 2015 until next month, but its preliminary estimate indicates a 24% year-over-year increase in commercial and multifamily originations. Here’s the property breakdown:
- A 128% increase in dollar volume for industrial properties
- A 60% increase in dollar volume for hotel property mortgages
- A 15% increase in dollar volume for both multifamily mortgages and office property mortgages, respectively
- A 13% increase in dollar volume for retail property mortgages
The MBA has also release its 2015 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes which shows that 11% of outstanding commercial and multifamily debt held by non-bank lenders and investors will mature this year. This debt accounts for $183.3 billion of $1.7 trillion of overall commercial and multifamily debt and marks a 51% increase from the $121 billion which matured in 2015. Maturities are also forecasted to grow to $208 billion in 2017, according to the trade organization.