Commercial/Multifamily Borrowing Down 54% in the Fourth Quarter of 2022

February 13, 2023 Commercial / Multifamily FHA Multifamily MBA Research Multifamily Press Release


Falen Taylor

(202) 557-2771

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San Diego (February 13, 2023) — Commercial and multifamily mortgage loan originations were 54 percent lower in the fourth quarter of 2022 compared to a year ago and decreased 23 percent from the third quarter of 2021. This is according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, which was released today at the 2023 Commercial/Multifamily Finance Convention and Expo.

”Borrowing and lending backed by commercial and multifamily properties slipped further to close out 2022,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research. “The last quarter of the year typically sees the highest volumes, but the chill caused by rising interest rates, questions about property valuations, and increased economic uncertainty made the fourth quarter of 2022 the weakest of the year.”

Woodwell continued, “Depositories were the one major capital source to increase volumes from the previous year, but even its fourth quarter activity was roughly half of what it was a year earlier. The overall picture is one of slower borrowing in the face of what have been significant shifts in the market.”

MBA, as more data comes in, will be updating and releasing final 2022 volumes over the next month.


Decreases in originations for industrial, office, multifamily, and retail, properties led the overall drop in commercial/multifamily lending volumes when compared to the fourth quarter of 2021. There was a 69 percent year-over-year decrease in the dollar volume of loans for industrial properties, a 56 percent decrease for office properties, a 52 percent decrease for multifamily properties, a 46 percent decrease for hotel properties, and a 44 percent decrease for retail properties. Health care property loan originations increased 4 percent compared to the fourth quarter of 2021.  

Among investor types, the dollar volume of loans originated for commercial mortgage-backed securities (CMBS) decreased by 92 percent year-over-year. There was a 60 percent decrease for investor-driven lenders, a 53 percent decrease in life insurance company loans, a 47 percent decrease for depositories, and a 13 percent decrease in the dollar volume of government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans.


On a quarterly basis, fourth-quarter originations for hotel properties decreased 39 percent compared to the third quarter 2022. There was a 38 percent decrease in originations for industrial properties, a 37 percent decrease for retail properties, and a 34 percent decrease for health care properties. Originations for multifamily decreased 23 percent, while originations for office properties increased 9 percent.

Among investor types, between the third and fourth quarters of 2022, the dollar volume of loans for investor-driven lenders decreased 38 percent, loans for CMBS decreased 35 percent, originations for depositories decreased 33 percent, and loans for life insurance companies decreased 5 percent. The dollar volume of loans for GSEs increased by 4 percent.


A preliminary measure of commercial and multifamily mortgage bankers’ originations volumes shows activity in 2022 was 10 percent lower than in 2021. By property type, mortgage bankers originations for office properties decreased 30 percent from 2021, industrial properties decreased 12 percent, and multifamily properties decreased 11 percent. Retail properties increased 16 percent, hotel properties increased 16 percent, and health care property originations increased 23 percent.

Among investor types from 2022 compared to 2021, mortgage bankers originations for CMBS decreased 63 percent, originations for life insurance companies decreased 19 percent, loans for investor-driven lenders decreased 9 percent, and loans for GSEs decreased 4 percent. Depository loans increased 22 percent.

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