Hotel loans and securitized commercial mortgages saw the biggest quarter-over-quarter production gains, while health care loans and securitized activity made the most headway from a year ago.
The origination of commercial real estate loans jumped by more than a third between the first quarter and second quarter of this year.
Despite the improvement, such gains between the first and second quarters have been the standard each year since 2009. This year’s rise from the first quarter was the smallest during the five-year period.
A more meaningful comparison is with a year earlier, and there was a 2 percent decline between the second-quarter 2013 and the second-quarter 2014.
The origination data was reported in the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
Using MBA’s previously reported numbers for actual 2013 dollar volume, estimated CRE loan originations were $86.6 billion from April 1 through June 30.
Estimated commercial mortgage production was $64.4 billion three months earlier and $88.2 billion a year earlier.
Second-quarter 2014 CRE originations for commercial mortgage-backed securities and conduits soared 132 percent from the previous period and was 45 percent better than during the same quarter in the previous year.
CMBS and conduit activity was the strongest among all investor types.
Commercial mortgage production at Fannie Mae and Freddie Mac nearly doubled compared to the prior quarter but receded 13 percent from the second-quarter 2013.
At life insurance companies, the quarter-over-quarter rise was 47 percent. But life insurer production descended 13 percent from the year-earlier period.
By property type, the 91 percent increase for hotel loan originations was the strongest performance compared to three months earlier. Hotel activity was also up from the second-quarter 2013 by 45 percent.
Health care loan production leapt 78 percent and was 95 percent higher than one year previous — the healthiest year-over-year gain of any property type.
Retail property loan volume was up by nearly two thirds from the first quarter but retreated 10 percent on a year-over-year basis.
A 44 percent quarter-over-quarter increase was reported for office loan originations, though office activity was off by 6 percent on a year-over-year basis.
Multifamily originators lifted business by nearly a third from the first quarter but fell short by 10 percent of the second-quarter 2013.
