The total amount of commercial real estate debt declined by 0.4% in the second quarter compared with the first, although an increase in debt secured by multifamily properties mitigated a fair amount of the decline, according to the Mortgage Bankers Association of America.
There is $2.37 trillion in outstanding commercial/multifamily mortgage debt as of June 20, which is $10.4 billion lower than the start of the quarter.
Multifamily mortgage debt outstanding rose to $826 billion, an increase of $5.4 billion or 0.7% from the first quarter of 2012.
The overall decline is a result of a drop in the outstanding balance
“CMBS loans paid-off, paid-down and were liquidated at a far faster pace than new CMBS loans were originated during the quarter,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “The drop in CMBS balances more than offsets the increases in holdings by Fannie Mae, Freddie Mac and FHA, banks and life insurance companies.”
CMBS and other issuers saw the largest decrease in dollar terms in their holdings of commercial/multifamily mortgage debt, a decrease of $19.8 billion, or 3.4%. Still, this category is the largest holder of this kind of debt, with a share of 23%, behind commercial banks which hold 34%.
The government-sponsored enterprises hold 15% of the total, but
