Commercial/Multifamily Originations End the Year Strong
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ORLANDO, FL (February 1, 2016) - Commercial and multifamily mortgage originations increased 35 percent between the third and the fourth quarters of 2015, and were up 19 percent compared to the fourth quarter of 2014, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. MBA's commercial/multifamily mortgage bankers' originations index provides a preliminary estimate that originations for the full year 2015 were 24 percent higher than in 2014.
"We saw strong volumes of borrowing and lending for commercial real estate in 2015 and in particular in the fourth quarter," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "In fact, the fourth quarter was the fourth highest quarter for borrowing and lending on record. Banks, life insurance companies, and Fannie Mae and Freddie Mac saw their highest originations volumes on record. Of the major investor groups, only the CMBS market didn't break a record for originations. In terms of overall borrowing and lending volumes, 2015 as a whole was likely second only to 2007"
FOURTH QUARTER 2015 ORIGINATIONS NINETEEN PERCENT HIGHER THAN FOURTH QUARTER 2014
The 19 percent overall increase in commercial/multifamily lending volumes when compared to the fourth quarter of 2014 was driven by an increase in originations for industrial and hotel properties. The increase included an 128 percent increase in the dollar volume of loans for industrial properties, a 60 percent increase for hotel properties, a 15 percent increase for office properties, a 15 percent increase for multifamily properties, a 13 percent increase in retail property loans, and a 57 percent decrease in health care property loans.
Among investor types, the dollar volume of loans originated for commercial bank portfolios increased by 82 percent from last year's fourth quarter. There was a 24 percent increase for Government Sponsored Enterprise (or GSEs - Fannie Mae and Freddie Mac), a 19 percent increase for life insurance companies and a two percent decrease in dollar volume of loans originated for CMBS.
FOURTH QUARTER 2015 ORIGINATIONS UP 35 PERCENT FROM THIRD QUARTER 2015
Fourth quarter 2015 commercial and multifamily mortgage originations were 35 percent higher than in the third quarter. Compared to the third quarter, fourth quarter 2015 originations for industrial properties increased 150 percent. There was a 131 percent increase in originations for hotel properties, a 47 percent increase for multifamily properties, a 20 percent increase for health care properties, a 15 percent increase for retail properties, and office property originations decreased one percent from the third to the fourth quarter 2015.
Among investor types, between the third and fourth quarters of 2015, loans for GSEs increased 90 percent, loans for commercial bank portfolios increased 50 percent, originations for life insurance companies increased 17 percent, and loans for CMBS increased by three percent.
PRELIMINARY 2015 ORIGINATIONS 24 PERCENT HIGHER THAN 2014
A preliminary measure of commercial and multifamily mortgage origination volumes shows 2015 originations 24 percent higher than during 2014. Compared to 2014, originations for industrial properties increased 103 percent. There was a 31 percent increase for multifamily properties, a 29 percent increase for hotel properties, a 23 percent increase for office properties, a 19 percent increase for retail properties, and a 41 percent decrease for health care properties.
Among investor types, 2015 versus 2014, loans for GSEs increased 59 percent, loans for commercial bank portfolios increased 59 percent, originations for life insurance companies increased 23 percent and loans for CMBS increased six percent in 2015 versus 2014.
In late March, MBA will release its Annual Origination Summation report for 2015 with final origination figures for the year.
To view the report, please visit the following Web link: https://www.mba.org/Documents/Research/4Q15CMFOriginationsSurvey.pdf