CRE Lending Dropped 8% in 2022; Still Second-Highest Tally on Record
Total commercial real estate mortgage borrowing and lending equaled $816 billion in 2022, an 8% decrease from the record $891 billion in 2021 and a 33% increase from $614 billion in 2020. That’s according to the Mortgage Bankers Association’s (MBA) 2022 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.
“Borrowing and lending backed by commercial and multifamily properties started 2022 strong but then dropped off because of rising interest rates, uncertainty about property values, and increased questions about the economy and some property fundamentals,” said Jamie Woodwell, MBA’s head of commercial real estate research. “Despite the 8% annual decline, the $816 billion in total volume was still the second highest on record. Bank lending ran against the trend, increasing by 12% to $409 billion.”
He added, “A key question for 2023 is when the market will have stabilized enough for the logjam in new deal activity to break.”
- ◦Financing