The origination of commercial real estate loans increased last year, with securitized CRE loans leading the gain. Favorable conditions have continued into this year.
Commercial mortgage bankers closed approximately $399.8 billion in new business during all of 2014. The total includes multifamily originations.
Last year’s activity was an improvement over 2013, when industry-wide CRE production amounted to 32,715 loans for $358.5 billion.
The latest numbers were reported by the Mortgage Bankers Association in its
2014 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.
In addition to climbing 12 percent, MBA Vice President of Commercial Real Estate Research Jamie Woodwell noted that commercial mortgage production
was the third-highest on record.
“The year saw record origination volumes from life insurance companies and the GSEs, and the second-highest level on record for banks,” Woodwell stated in a news release.
“Only 2006 and 2007 recorded higher overall origination volumes.
“With property fundamentals and values continuing to improve, and interest rates still extraordinarily low, last year’s momentum has carried into the start of 2015.”
Issuance of commercial mortgage-backed securities financed $106.3 billion of last year’s CRE loan originations, climbing from just $80 billion in 2013.
Another $102.5 billion came from the nation’s commercial banks, slightly more than the previous year’s $100 billion.
After that were
life insurance companies and pension funds; Fannie Mae; Freddie Mac; real estate investment trusts; and investment funds.
Multifamily originations were $150.3 billion in 2014, more than the previous year’s $137 billion.
