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Commercial/Multifamily Borrowing Up 20 Percent Year-over-Year

Commercial/Multifamily Borrowing Up 20 Percent Year-over-Year

WASHINGTON, D.C. (August 2, 2017) – (RealEstateRama) — According to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, second quarter 2017 commercial and multifamily mortgage loan originations were 20 percent higher than during the same period last year and 28 percent higher than the first quarter of 2017.

“Borrowing and lending backed by commercial and multifamily properties has been strong the first half of this year,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  “Reflecting broad industry trends, borrowing backed by industrial properties increased by two-thirds compared to the first half of 2016, while borrowing backed by retail properties dropped by one-sixth.  As was the case during the first quarter, commercial/multifamily mortgage bankers’ originations increased despite a slowdown in the volume of sales transactions.” 


A rise in originations for industrial and office properties led the overall increase in commercial/multifamily lending volumes when compared to the second quarter of 2016.  The second quarter saw a 91 percent year-over-year increase in the dollar volume of loans for industrial properties, a 33 percent increase for office properties, a 21 percent increase for multifamily properties, a 14 percent increase for hotel properties, a 7 percent increase in health care property loans, and a 9 percent decrease in retail property loans.

Among investor types, the dollar volume of loans originated for Commercial Mortgage Backed Securities (CMBS) loans increased by 168 percent year-over-year.  There was a 26 percent year-over-year increase for Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) loans, a 2 percent decrease in life insurance company loans, and a 21 percent decrease in the dollar volume of commercial bank portfolio loans. 


Second quarter 2017 originations for hotel properties increased 139 percent compared to the first quarter 2017.  There was a 39 percent increase in originations for industrial properties, a 39 percent increase for office properties, a 34 percent increase for retail properties, a 25 percent increase for multifamily properties, and a 34 percent decrease for health care properties from the first quarter 2017.

Among investor types, between the first and second quarter of 2017, the dollar volume of loans for CMBS increased 117 percent, loans for life insurance companies increased 25 percent, originations for GSEs increased 22 percent, and loans for commercial bank portfolios decreased by 5 percent.

To view the report, click here.

Ali Ahmad

(202) 557- 2727


The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.


Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700