On an absolute level, commercial real estate lending remained depressed through the first quarter of 2010 and loan portfolio credit quality further weakened. However, there were significant variations between lenders, property types and borrowers.
Overall, first quarter commercial and multifamily mortgage loan originations were 12% higher than during the same period last year. But they were 26% lower than during the fourth quarter of 2009, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily mortgage originations.
The 12% overall increase in commercial/multifamily lending activity during the first quarter was driven by increases in originations for office and retail properties. When compared with the first quarter of 2009, the increase included a 98% increase in loans for retail properties, a 28% decrease in loans for industrial properties, a 46% decrease in hotel property loans, and a 68% decrease in health care property loans.
Among investor types, loans for conduits for CMBS saw an increase of 657% compared to last year’s first quarter. There was also a 131% increase in loans for life insurance companies.
On the downside, commercial bank portfolios saw 4% decrease in loans year-to-year, and the dollar volume of loans for Fannie Mae and Freddie Mac saw a decrease of 49%. To read this article in its entirety click HERE.
Chris Shaheen is a graduate of Louisiana State University where he obtained a Bachelor of Science in Business Management. Shaheen obtained the Louisiana Real Estate Sales License in 1995 where he began work as a consultant with Saurage Company Inc. as a specialist in development, land valuation, and financing.
Saurage Company, Inc dba Saurage Commercial Real Estate was founded in Baton Rouge in 1991 with the purpose of providing exceptional real estate services with an emphasis on commercial property and property management. Saurage Commercial Real Estate offers to its clients a full range of real estate services including brokerage, investment advising, development consulting, REO disposition specialists, asset management, fee based consulting, tenant representation, and buyer representation. The staff of professionals includes combined experience of 50 years, as well as CCIM Designees and Candidates and recipients of Master of Business Administration.