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

BAM-sells-Glasgow-CONNECT110NS-to-Deutsche-AWM

BAM sells Glasgow CONNECT110NS to Deutsche AWM

Birmingham-NIA-to-Become-Barclaycard-Arena-following-Facelift

Birmingham NIA to become Barclaycard Arena following Facelift

close-up of a mens hand refilling the car with a gas pump

Motoring Organisations welcome Supermarket Petrol Price Cuts but PRA warns of Forecourt Closures

Grant-kickstarts-Sci-Tech-Daresbury-Expansion

Grant kickstarts Sci-Tech Daresbury Expansion

Water treatment tank with waste water with aeration process

Industrial Park planned for derelict Yorkshire Water Works site

Warm-Weather-hits-Sales-at-Next

Warm Weather hits Sales at Next

British-Land-announces-40m-Drake-Circus-Leisure-Scheme

British Land announces £40m Drake Circus Leisure Scheme

allianz-moves-into-irish-property-market

Allianz Moves into Irish Property Market

Image of norwegian city of Alesund during twilight blue hour.

Norway Leaps into Top Ranks of Foreign U.S. Commercial R.E. Buyers – Second Only to Canada

Property-Professionals-Commit-To-MIPIM-UK

Property Professionals Commit to MIPIM UK

Royal Bank of Scotland HQ Dundas House Edinburgh

RBS and NatWest introduce Business Accelerator Hubs

Woman In Love On Romantic Date in Restaurant** Note: Shallow depth of field

Former Pizza Express Owner snaps up Restaurant Chain

Construction workers going to work wearing helmets

North East Developer aims to expand beyond Heartland

Aldi-joins-Supermarket-Price-War-amid-Expansion-Plans

Aldi joins Supermarket Price War amid Expansion Plans

Another-Tenant-confirmed-at-Four-World-Trade-Center

Another Tenant confirmed at Four World Trade Center

Manual forklift pallet stacker truck equipment at food warehouse

B&M seeks Leaseback Deal for ‘serious’ Merseyside Warehouse