Lenders are originating more loans for commercial property than in the past. Lenders are finding opportunities in industrial properties and multifamily properties. Office and hotel loans continue to increase as well. The loans for retail and medical properties continue to be stable. The increase in the origination of loans means lenders are optimistic about the future economic outlook and that they are loosening their tight lending requirements. As the supply of money increases, the lenders have more to lend and investor have the ability borrow money in a timely manner to close a commercial real estate transaction.
Excerpts from Article: “In J.P. Morgan’s estimates, year-to-date private label CMBS issuance has already outpaced the levels seen during the same period last year by 48 percent and remains on pace to reach at least $105 billion in new issuance for full-year 2015.”
“Mortgage lenders appeared the most bullish on industrial properties, with a 269 percent increase in originations in the first quarter of 2015, followed by multifamily properties, which saw a 71 percent increase in originations. Loan originations on office properties went up 53 percent year-over-year and on hotels 51 percent. The retail real estate sector saw only a modest increase in originations, at 5 percent, and originations on health care properties stayed flat with first quarter 2014 levels.”
“However, when it came to CMBS originations in the first quarter of 2015, hotels saw the largest share of the pie, followed by office buildings and retail properties, according to researchers with Trepp LLC.”
Citation and Link: Misonzhnik, Elaine 6 May. 2015. “Commercial Mortgage Originations, Including CMBS, Rising to Meet Refinancing Demand.” 6 May. 2015 http://nreionline.com/cmbs/commercial-mortgage-originations-including-cmbs-rising-meet-refinancing-demand
Picture & Citation: Misonzhnik, Elaine. May 2015. “Commercial Mortgage Originations, Including CMBS, Rising to Meet Refinancing Demand” National Real Estate Investor. 6 May 2015. http://nreionline.com/cmbs/commercial-mortgage-originations-including-cmbs-rising-meet-refinancing-demand