Industrial and multifamily properties hit second-quarter records
There was a surge in commercial and multifamily mortgage loan originations in the second quarter of 2021, according to the Mortgage Bankers Association’s latest survey.
Borrowing and lending tied to commercial and multifamily properties were up 106% year over year and 66% quarter over quarter in Q2.
“Mortgage originations doubled compared to the second quarter of 2020 when loan demand cratered, and pandemic-related uncertainty made extending credit difficult,” said Jamie Woodwell, vice president of commercial real estate research at MBA. “Even more notable is that compared to levels seen in 2019, a record year for originations, this year’s second quarter showed a modest 1% increase.”
Woodwell added that loan origination still varies between property types. Industrial properties saw the biggest increase in lending volume (+327% YoY) followed by health care properties (+302% YoY), hotel (+234% YoY), office buildings (+149% YoY), retail properties (+88% YoY), and multifamily property (+63% YoY).
“Originations of loans backed by industrial and multifamily properties hit second-quarter records, while retail and lodging loan volume remained muted,” Woodwell said.
Read more: Has the commercial real estate market fully recovered from pandemic?
Among investor types, the dollar volume of loans originated for Commercial Mortgage-Backed Securities (CMBS) increased by 1,913% year over year. There was a 144% gain for life insurance company loans, a 72% increase for commercial bank portfolio loans, and a 33% drop in the dollar volume of Government-Sponsored Enterprises (GSEs - Fannie Mae and Freddie Mac) loans.
