US Commercial Property Lending Forecast Positive

Posted on 22 February, 2013 by Jodee Redmond

The Mortgage Bankers Association (MBA) is projecting a double-digit increase in lending in US commercial real estate mortgages over 2012. This works out to $254 billion in loans.

Analysts are predicting the momentum to continue throughout the rest of the year. Even though most sectors saw volume boosts, the greatest gains came in the hotel sector.

The index was up 49 per cent between the third and fourth quarters of 2012. It was also up 49 per cent compared to the fourth quarter of 2011. This increase includes the following figures:

  • 331 per cent increase in dollar value of loans for hotel propertie
  • 78 per cent increase for office properties
  • 46 per cent increase for industrial properties
  • 5 per cent increase for retail property loans
  • 26 per cent decrease in health care loans

The increase in activity will mean more competition between borrowers and changing loan terms. Private funds are aggressively entering the market and providing an option for commercial property investors.

They are proving to be tough competition for established lenders by approaching property owners 12 or 18 months in advance of loans maturing to discuss their refinancing options and offer prepackaged modifications for consideration.

Loan maturities will be manageable in 2013. Approximately 8 per cent, or $119.5 billion, of commercial and multifamily mortgages currently held by non-bank lenders and investors will mature this year. This figure is 21 per cent lower than the $150.6 billion in mortgages that matured in 2012, according to MBA.




Leave a Reply


Recent Posts

Jimmy-Wales-the-GMG

Jimmy Wales Leaves His Position at the Guardian Board

Tesco-building

Tesco Sells its Opticians Practices to Vision Express

new-york-city-skyscrapers

New York City’s Biggest Commercial Property Lender Revealed

Business rates April 2017

Firms Concern As New Business Rates Take Full Effect

The total invested in central London was £4.18 billion.

London’s West End Commercial Property Hit Record High

Cybersecurity Becoming an Increasing Problem for U.K firms

Cybersecurity Becoming an Increasing Problem for U.K firms

London City Properties

Commercial Property Growth Slows in London

scotland-investment-office-building

Scottish Commercial Property Market on the Raise for 2017

dublin-property-market-changes

Investment From The Continent Pushes Up Irish Property Value

Bullring Shopping Centre Birmingham

Hammerson Sells to Fund

chinese-currency-renminbi

Chinese Government Agencies to Restrict Foreign Property Investment

Co-op Bank

For Sale: The Co-op Bank

London Oxford Street Retail Premises

Business Rates Revaluation 2017 – Winners and Losers

mecca-city-saudi-arabia

Revealed: The Abraj Kudai

Poundland Store

Pep & Co Clothing to Launch in Poundland Stores Across the UK

Gourmet Burger Kitchen burgers

Gourmet Burger Kitchen to Join Leicester’s Highcross Shopping Centre