Findings from a Mortgage Bankers Association (MBA) survey maintain commercial and multifamily lending declined in 2022.
The MBA 2022 Commercial Real Estate / Multifamily Finance Annual Origination Volume Summation determined total commercial real estate mortgage borrowing and lending equaled $816 billion in 2022, representing an 8 percent decline from the record $891 billion the previous year.
According to the ABA, commercial and multifamily mortgage bankers closed $595 billion of loans in 2022, which the survey indicated reflects 13 percent less than the $683.2 billion reported in 2021.
The ABA noted the annual survey results of commercial/multifamily origination volumes present national totals across different roles, investor groups, property types, and finance structures.
“Borrowing and lending backed by commercial and multifamily properties started 2022 strong but then dropped off because of rising interest rates, uncertainty about property values, and increased questions about the economy and some property fundamentals,” MBA Head of Commercial Real Estate Research Jamie Woodwell said. “Despite the eight percent annual decline, the $816 billion in total volume was still the second highest on record. Bank lending ran against the trend, increasing by 12 percent to $409 billion.”
The ABA survey showed that multifamily properties experienced the highest volume last year at $437 billion of total lending and $333 billion of mortgage bankers’ originations.
“A key question for 2023 is when the market will have stabilized enough for the logjam in new deal activity to break,” Woodwell said.