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MBA Reports CRE Loan Originations Rose Q1, Still 34% Lower than Q4

Commercial and multifamily mortgage loan originations rose 12% in the first quarter of 2019 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. In line with seasonality trends, originations the first three months of the year were 34% lower than the fourth quarter of 2018.

MBA’s Vice President of Commercial Real Estate Research Jamie Woodwell says, “The momentum seen in 2018’s record year of borrowing and lending continued in the first quarter of this year. First quarter volumes were higher for nearly every property type, and double-digit growth in loan volume for Fannie Mae and Freddie Mac led the increase among capital sources.”

Woodwell pointed out that “Low interest rates and strong property values continue to make commercial real estate an attractive market for borrowers.”

Compared to a year earlier, a rise in originations for industrial, healthcare and hotel properties led the overall increase in commercial/multifamily lending volumes. By property type, industrial (73%), healthcare (41%), hotels (14%), retail (9%) and multifamily (9%) all experienced year-over-year gains by dollar volume. The dollar volume of office property loans was unchanged.

Among investor types, the dollar volume of loans originated for Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) increased by 14% year-over-year. Life insurance company loans increased 7%, commercial bank portfolios increased 6%, while loans originated for CMBS decreased 4%.

MBA notes it is typical for first quarter originations to decrease in comparison to the previous year’s fourth quarter. Among property types, declines were seen in healthcare (49%), hotels (45%), multifamily (40%), retail (32%) and office space (30%). Industrial properties bucked the overall trend, rising 17% from the fourth quarter of 2018.


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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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