Commercial/MF Originations Set Record

Commercial and multifamily mortgage loan originations surged to a record $58.3 billion in the third quarter, 31.2% higher than in the second quarter and 64% higher than in the third quarter of 2004, according to the Mortgage Bankers Association.In addition, year-to-date originations are 43.6% higher than they were last year at this time, the trade association said. "Capital continues to flow into the commercial and multifamily real estate markets on both the debt and equity sides," said Doug Duncan, the MBA's chief economist. The $22.8 billion increase in lending over that of last year's third quarter was led by a 531% increase in loans on hotel properties. Lending volume on other property types also increased, with office-backed loans up 55%, multifamily lending up 45%, lending on retail properties up 33%, and lending on industrial space up 80%. Originations for commercial mortgage-backed securities conduits were up 144% from those of the third quarter of 2004, followed by originations for commercial banks, which were up 33%.