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

Convenience Store

Convenience Chain Enters into Administration

Hotel bell

Leisure Sector to be Unscathed by Brexit Predicts Colliers


UK Commercial Property Market to Slow in Wake of Brexit

Holland & Barrett

Holland & Barrett Beats £100m Profit Milestone


Multi-Million Pound Refurbishment set for Birmingham Office Building

Money Pile

Hammerson Sells Essex Shopping Park for £93 Million


Record High Reached for London Office Space Costs

Retail Performance

Online Shopping Not Fazing Shopper’s Support of Town Centres

Poundland could see a takeover bid by Steinhoff

Poundland Could See a Takeover Bid from Steinhoff

HMRCs New Proposals Could Affect Small Businesses

HMRC’s New Proposals Could Affect Small Businesses

Could Amazon Fresh be a game changer

Could Amazon Fresh be the Future of Grocery Shopping?

Tesco Logo

Giraffe Restaurant Chain Acquired from Tesco


Commercial Property Rents and Capital Values Remain Steady in May

Modern Office Interior

The 2016 Office Market’s Halfway Point Overview


MediaCityUK Set for New £1bn Second Phase

Office work place

Tax and Regulatory Changes Putting Pressure on Businesses