- 2015 total production was $5.02 billion up 33% from 2014’s $3.719 billion.
- This was our best year since 2007’s $5.541 Billion.
- Total number of loans closed for the year was 690 up from 535 in 2014.
- Q4 was up about 3.5% over Q4 of 2014 in dollar volume.
- Average loan size for 2015 was $7.174 million up from $6.951 in 2014
- Life company production was $2.715 Billion with 400 loans or 55% of the total dollar volume followed by conduit at $906 Million or 18% of production and banks at $591 Million or 12% of the total.
- The majority of this year’s increase came from life company lending (up $848 million from 2014 and Fannie/Freddie up $288 Million).
Today, at MBA’sCREF16 Convention, the MBA released several reports covering the commercial/multifamily real estate finance markets. The reports are part of MBA’s ongoing research and analysis. Among the findings:
- 2015 Q4 Commercial/Multifamily Originations Up 19%; Total 2015 Up 24%
- Volume of Commercial/Multifamily Mortgages Maturing Grows 51%
- MBA Forecasts 3% Rise in Commercial/Multifamily Mortgage Bankers Originations in 2016; Mortgage Debt Outstanding to Rise to $2.9 trillion
- MBA Releases 2015 Year-End Commercial/Multifamily Servicer Rankings
Abstracts of and links to the reports can be found below, and more information is also available in MBA’s CREF Database and on www.mba.org/crefresearch
2015 Q4 Commercial/Multifamily Originations Up 19%; Total 2015 Up 24%
There were strong volumes of borrowing and lending for commercial real estate in 2015. In particular, the fourth quarter was the fourth highest for borrowing and lending on record. Banks, life insurance companies, and Fannie Mae and Freddie Mac saw their highest tallied originations volumes. Of the major investor groups, only the CMBS market didn’t break a record for originations. In terms of overall borrowing and lending volumes, 2015 as a whole was likely second only to 2007.
View MBA’s Q4 Commercial/Multifamily Mortgage Bankers Originations Index
Volume of Commercial/Multifamily Mortgages Maturing Grows 51%
Eleven percent or $183.3 billion of $1.7 trillion of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2016, a 51 percent increase from the $121 billion that matured in 2015. Maturities will grow to $208 billion in 2017.
Learn more about MBA’s Year-end 2015 Commercial/Multifamily Loan Maturity Volumes Report
MBA Forecasts 3% Rise in Commercial/Multifamily Mortgage Bankers Originations in 2016; Mortgage Debt Outstanding to Rise to $2.9 trillion
Commercial and multifamily real estate finance markets are expected to remain strong. A growing economy, coupled with only gradual increases in interest rates, will continue to support the commercial property market, but there is a chance that cap rates could increase more rapidly in response to rising interest rates, impacting property sales and mortgage originations.
View MBA’s Fifth Annual Commercial/Multifamily Real Estate Finance Forecast (members only access)
MBA Releases 2015 Year-End Commercial/Multifamily Servicer Rankings
MBA’s Servicer Rankings includes breakouts for primary, master and special servicing. It also ranks firms by their total volumes, as well as their servicing for specific investor groups, including CMBS, life insurance company, Fannie Mae and Freddie Mac, FHA and other groups.
View MBA’s Year-End 2015 Commercial/Multifamily Servicer Rankings
Q10 POSTS A STRONG 2ND QUARTER WITH $1.5 BILLON IN CLOSED LOANS
Q10 continues to see an active market in 2015 with over $1.5 billion originated commercial real estate loans in 2nd quarter 2015. Q10 has over 130 highly experienced finance professionals located in 23 offices throughout the country. Our clients include local, regional and national developers, investors, property owners and REITS.
Our business is built on strong relationships, and we strive to deliver the capital you need for you next loan with a hands-on approach. We would appreciate the opportunity to represent you on your next transaction.
Michael Kelly, President of Q10 Realty Mortgage and Investment Company, recently spoke with reporters at the Colorado Real Estate Journal about the commercial real estate market and how it is performing in 2015. Highlights include:
- Record year for lending for life insurance companies
- Record year for government-sponsored enterprises
- Record low interest rates
- Fully amortized loans available for longer periods
Read the full story at Colorado Real Estate Journal.
Q10 recognizes some of the transactions closed in April and May from our offices nationwide.