Origination volumes declined 7% from a year earlier and 17% from the second quarter, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
"Even though low interest rates continue to make borrowing extremely attractive, a moderate pace of commercial property sales transactions and a continued drop in the volume of commercial mortgages maturing limited the overall amount of commercial mortgage loans originated," Jamie Woodwell, MBA's vice president of commercial real estate research, said in a news release.
The year-over-year results included a 35% decrease in the dollar volume of loans for retail properties and a 24% drop for office properties.
Originations for retail properties tumbled 43% from the second quarter, while originations for office properties slid 29%.
Among investor types, the dollar volume of loans for life insurance companies fell 32% while there was an 8% rise for commercial bank portfolios.