Commercial/Multifamily Borrowing Increases 79% Year-Over-Year in Q4 2021

According to today’s (2-14-22) release of the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, loan originations in Q4 2021 were 79% higher year-over-year and 44% higher from Q3 2021.

The surge in Q4 2021 was led by increases in originations for hotel, office, industrial, and retail properties commercial/multifamily lending volumes when compared to Q4 of 2020. There was a 167% year-over-year increase in the dollar volume of loans for hotel properties, a 122% increase for office properties, a 113% increase for industrial properties, a 109% increase for retail properties, and a 57% increase for multifamily properties. Health care property loan originations decreased -17% compared to Q4 2020.

In a statement prepared for the release of the Q4 report, Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research said, “The fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily properties. Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales transaction volumes, and low interest rates all fueled commercial and multifamily borrowing and lending activity that easily outpaced previous periods.”