Andrews: Commercial real estate loan volume rises in the first quarter

Andrews: Commercial real estate loan volume rises in the first quarter




The Mortgage Bankers Association reports that commercial originations are up 36% in the first quarter of 2012 versus the first quarter of last year. "Borrowing and lending on commercial and multifamily properties continue to rebound from the lows seen during the Great Recession," says MBA's Vice President of Commercial Real Estate Research Jamie Woodwell. "The low interest rates and stabilization in commercial real estate fundamentals that raised origination levels by 55% in 2011 are continuing to buoy activity in 2012." The numbers break down as follows, by property type:
• Health care — up 118%
• Retail — up 109%
• Multifamily — up 45%
• Hotel — down 7%
• Office — down 9%
• Industrial — down 32%
And changes by investor type are:
• Commercial banks — up 104%
• GSE/Fannie/Freddie — up 40%
• Life insurance companies - up 10%
• Conduits/CMBS — down 10%



The MBA's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations does not break the numbers down by state, so we cannot tell how we in south Louisiana did over the same period. Nonetheless, this bit of good news on the national level will hopefully translate into good news for us.

(Brian Andrews is a certified mortgage banker specializing in the financing of commercial real estate. His business is Andrews Commercial Real Estate Services, and he can be reached at brian.andrews@acmla.com.)



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