Jamie Woodwell, who heads MBA’s commercial real estate research, said the uptick in commercial mortgage debt outstanding seen in the fourth quarter and throughout 2023 was “among the slowest paces since the mid-2010s.”
“Every major capital source increased its mortgage holdings during the year,” he added. “Mortgage originations were down by roughly 50% in 2023 compared to 2022, but that meant that few loans were paying off, helping maintain portfolio sizes even in the face of lower inflows.”
MBA’s data on commercial and multifamily mortgage debt
Commercial banks held the largest share of commercial/multifamily mortgages, according to the MBA report, accounting for $1.8 trillion, or 38%, of the total.
Agency and GSE portfolios and MBS came in second, accounting for $1 trillion, or 21%, of the total share. Life insurance companies held $733 billion (16%), while CMBS, CDO, and other ABS issues had $593 billion (13%).
Focusing on multifamily mortgages, agency and GSE portfolios and MBS commanded the largest share with $1.0 trillion (48% of the total), followed by commercial banks ($612 billion, 29%), life insurance companies ($235 billion, 11%), state and local governments ($116 billion, 6%), and CMBS, CDO, and other ABS issues ($67 billion, 3%).
Source: mpamag.com