MBA nationwide commercial mortgage report shows improvement over 2009

Jamie Woodwell

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Commercial and multi-family loan originations were up 12 percent in the first quarter nationwide, compared to the same quarter a year earlier, but down 26 percent from the fourth quarter of 2009, according to the Mortgage Bankers Association. While there was a quarter-over-quarter drop, Jamie Woodwell, the vice president of commercial real estate research with MBA, said it’s too early to make assumptions about the market’s momentum. “It’s hard to draw conclusions based on first-quarter numbers given seasonal effects, such as the industry’s usual push to finalize deals before the end of the year, resulting in lower first-quarter origination activity,” Woodwell said. Several sectors saw marked increases in the number of loan originations year-over-year, including retail properties, which saw a 98 percent increase, office properties, which saw a 29 percent increase, and multifamily properties, which law loan originations climb 5 percent. Three types of commercial properties, including industrial, hotel and health care, saw drops of 28 percent, 46 percent and 68 percent, respectively. Overall, Woodwell said that lenders might be loosening up, a strong sign, despite the market’s relative lethargy. “There appears to be increasing capital available for commercial mortgages, but only limited demand for new mortgages from commercial and multifamily property investors,” Woodwell said. TRD

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