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CRE Loan Volume Posts Smaller Year-Over-Year Drop Than at Pandemic’s Height
Commercial and multifamily mortgage loan originations decreased 14% in the first quarter of 2021 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
Putting the annual decrease into perspective, MBA’s Jamie Woodwell noted that Q1’s 14% decline “was smaller than the year-over-year drops seen at the height of the pandemic-induced economic slowdown.”
MBA’s VP of commercial real estate research, Woodwell added, “Industrial and multifamily properties continue to attract the greatest interest, and retail and hotels saw the largest declines. As the economic recovery and re-opening speeds up, investors and lenders should have greater clarity into which pandemic-led changes are temporary, and which are more permanent.”
By property type, MBA said hotels decreased by 82% Y-O-Y, retail by 45%, office by 34% and multifamily properties by 5%. Conversely, healthcare lending rose 5%, and debt for industrial properties increased 66%.
