Drop in outstanding commercial debt points to moderate market stability

The amount of commercial and multi-family debt outstanding nationwide decreased to $3.43 trillion in the third quarter, according to the Mortgage Bankers Association, marking a $28 billion drop from the level seen in the second quarter. The .8 percent quarter-over-quarter decline represents moderate market stability, according to Jamie Woodwell, vice president of commercial real estate research with the MBA. “Given its longer-term nature, the amount of commercial and multi-family mortgages outstanding has remained relatively stable through the credit crunch and recession,” Woodwell said. The biggest holders of commercial and multi-family mortgages — mortgages attributed to multi-residence buildings — are commercial banks, according to the report, which have approximately $1.45 trillion in debt — about 45 percent of the total. TRD