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

Coventry (West Midlands)

West Midlands Achieves Record Inward Investment

Steel Industry

Tata Steel’s UK Business Gets One Step Closer to Finding New Owner

Mercedes Birmingham

Knight Frank Helps Drive Successful Mercedes Dealership Takeover

Mental Health Discussion

Workplace Negatively Effects One in Three Worker’s Mental Health

Shopping Centre

intu Watford Set for multi- million-pound Extension


Brexit Could Push UK back into Recession Warns Alistair Darling


Are Shop Amalgamations the Saviour of Retail?

Vacant Retail Unit

West Midlands One of Biggest Sufferers of Empty Shops


Over 800 HSBC Jobs Cut as Birmingham Move Gets Ever Closer


Is Cambridge the Right Place for your Business?


North West Experiences Successful Office Take-Up in Q1 2016

Rural Areas Suffered Most from Bank Branch Closures

Rural Areas Suffered Most from Bank Branch Closures


BHS a Victim of Delayed Business Rates Revaluation says Colliers

Modern Office Interior

Is the South East Office Market Looking Strong in 2016?

Money Pile

Over Third of SMEs Unsure of Interest Rates their Business Receives


St Modwen Sells Birmingham Office Trio for £7.3m