Commercial originations jumped 72% in the first quarter of 2022

Those of the first three months of the year were 39% lower than those of the previous fourth quarter, according to MBA.

Source: Mortgage Bankers Association

The strong momentum in commercial and multifamily borrowing and lending at the end of 2021 continued into the first quarter of this year.

According to the Mortgage Bankers Association (MBA) Quarterly Survey of Origins of Commercial/Multifamily Mortgage Bankers. In line with seasonality trends, creations in the first three months of 2022 were 39% lower than in the fourth quarter of 2021.

By property type, industrial grew 145%, healthcare properties grew 81%, and office grew 30%. Among investor types, dollar volume of loans to custodians increased 194% year-over-year. Life insurance portfolios increased 81%, investor-focused lenders increased 77%, CMBS increased 56%, and GSEs (Fannie Mae and Freddie Mac) increased 1%.

The continued growth in lending activity is the result of continued strong demand for certain property types such as industrial and multi-family properties, as well as renewed interest in other property types which have seen declines more spectacular during the early stages of the pandemic, such as hotels and retail. .

An important thing to highlight for the next quarters? Higher interest rates. Rising interest rates are likely to slow borrowing, but strong market fundamentals, real estate values ​​and investor interest should continue to support the market.

Jamie Woodwell is the Mortgage Bankers Association’s Vice President of Commercial Real Estate Research.

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