Total Commercial and Multifamily Lending Declined 8% Year-Over-Year in 2022

According to the Mortgage Bankers Association (MBA) 2022 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation, total commercial real estate mortgage borrowing and lending equaled $816 billion in 2022. This is down 8% from the record $891 billion in 2021 but is a 33% increase from the $614 billion in 2020.

The MBA says that excluding activity from smaller and mid-sized depositories not directly captured in the survey, commercial and multifamily mortgage bankers closed $595 billion of loans in 2022. This is 13% below the $682.3 billion reported in 2021.

Multifamily properties experienced the highest volume in 2022 at $437 billion of total lending and $333 billion of mortgage bankers’ originations. First liens accounted for 93% of the mortgage bankers’ dollar volume closed.

Adding additional background and analysis to the report, MBA’s Head of Commercial Real Estate Research Jamie Woodwell said:

“Borrowing and lending backed by commercial and multifamily properties started 2022 strong but then dropped off because of rising interest rates, uncertainty about property values, and increased questions about the economy and some property fundamentals. Despite the eight percent annual decline, the $816 billion in total volume was still the second highest on record. Bank lending ran against the trend, increasing by 12 percent to $ 409 billion.”