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CRE Debt Outstanding Increases to $4.7T at Year-End 2023
The level of commercial and multifamily mortgage debt outstanding at the end of 2023 rose $130 billion, or 2.8%, over year-end 2022, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. The new total reached $4/69 trillion of total mortgage debt outstanding, with nearly two-thirds of the 2023 tally going to multifamily.
“The amount of commercial mortgage debt outstanding grew in the final quarter of 2023 and for the year as a whole,” said Jamie Woodwell, MBA’s head of commercial real estate research. “However, the increase was among the slowest paces since the mid-2010s.
“Every major capital source increased its mortgage holdings during the year,” he continued. “Mortgage originations were down by roughly 50 percent in 2023 compared to 2022, but that meant that few loans were paying off, helping maintain portfolio sizes even in the face of lower inflows.”
Commercial banks continue to hold the largest share (38% ) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second largest holders of commercial/multifamily mortgages at $1.0 trillion (21%). Life insurance companies hold $733 billion (16%), and CMBS, CDO and other ABS issues hold $593 billion (13%).
- ◦Financing
