“Higher interest rates, uncertainty about property values, and questions about some properties’ fundamentals led to a steep fall-off in borrowing and lending backed by commercial real estate last year,” said Jamie Woodwell, head of commercial real estate research at MBA. “The declines were broad-based, covering every major property type and capital source.”
Despite these challenges, multifamily properties remained a relatively active segment, with an estimated $264 billion in total lending and $178 billion. First liens made up 96% of the dollar volume closed by mortgage bankers.
According to MBA, depositories were the leading capital source of CRE mortgage debt, followed by life insurance companies and pension funds, government-sponsored enterprises (Fannie Mae and Freddie Mac), private label CMBS, and investor-driven lenders.
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Woodwell noted that if property owners had the option to delay their selling or refinancing decisions, they often chose to do so.
Source: mpamag.com