According to the Mortgage Bankers Association's 2017 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation, U.S. commercial and multifamily mortgage bankers closed a record $530.1 billion of loans in 2017.
"2017 was a very strong year, driven by solid property fundamentals, rising property values, low interest rates, and a ready supply of mortgage capital all contributing to extraordinarily attractive finance markets," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "We expect another robust year in 2018, even with the slight increase in interest rates, although perhaps not quite as robust as 2017."
Commercial banks were the leading investor group for whom loans were originated in 2017, responsible for $151.2 billion of the total. Government Sponsored Enterprises (GSEs - Fannie Mae and Freddie Mac) saw the second highest volume, $130.0 billion, and were followed by commercial mortgage-backed securities (CMBS) issuers; life insurance companies and pension funds; and REITS, mortgage REITS and investment funds.
In terms of property types, multifamily properties saw the highest volume of mortgage bankers' origination volume, $233.9 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. First liens accounted for 96 percent of the total dollar volume closed.
The reported dollar volume of commercial and multifamily mortgages closed in 2017 was eight percent higher than the volume reported in 2016. Among repeat participants in the survey, the dollar volume of closed loans increased by seven percent.