Commercial/Multifamily Borrowing Unchanged in the First Quarter of 2024

May 9, 2024 Commercial / Multifamily FHA Multifamily MBA Research Multifamily Press Release


Falen Taylor

(202) 557-2771

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WASHINGTON, D.C. (May 9, 2024) — Commercial and multifamily mortgage loan originations were essentially unchanged in the first quarter of 2024 compared to a year ago, and decreased 23 percent from the fourth quarter of 2023, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. 

“Borrowing and lending backed by commercial real estate properties remained muted in the first quarter of 2024,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research. “Elevated interest rates and uncertainty about their direction have kept many current owners on the fence, with little commending a sale or refinance unless something forces the issue.”

Woodwell continued, “With loan maturities and other triggers increasingly likely to prompt action, property owners, potential owners, lenders, and others are all working through the specifics of each individual property to identify the level of mortgage debt that property can support. New loan originations should follow as this continues.”


Originations in the first quarter of 2024 varied across the different property types. There was a 31 percent year-over-year decrease in the dollar volume of loans for retail properties, a 22 percent decrease for health care properties, a 21 percent decrease for office properties, and a 7 percent decrease for multifamily properties. Hotel property originations increased 8 percent and there was a 63 percent increase for industrial properties.

Among investor types, the dollar volume of loans originated for depositories decreased by 41 percent year-over-year. There was a 17 percent decrease for government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans, but a 35 percent increase in life insurance company loans, a 41 percent increase for investor-driven lender loans, and a 93 percent increase in the dollar volume of commercial mortgage-backed securities (CMBS) loans.


On a quarterly basis, in the first quarter of 2024 originations for health care properties decreased 56 percent compared to the fourth quarter of 2023. There was a 49 percent decrease in originations for retail properties, a 37 percent decrease for hotel properties, a 29 percent decrease for multifamily properties, and originations for office properties decreased 3 percent. The dollar volume of loans for industrial properties increased 12 percent.

Among investor types, between the fourth quarter of 2023 and first quarter of 2024, the dollar volume of loans for life insurance companies decreased 37 percent, loans for depositories decreased 36 percent, originations for GSEs decreased 30 percent, and loans for investor-driven lenders decreased 18 percent. The dollar volume of loans for CMBS increased by 57 percent.