Commercial and multifamily real estate borrowing and lending continued at a moderate clip in the third quarter according to the Mortgage Bankers Association (MBA) release of their Quarterly Index of Commercial/Multifamily Mortgage Bankers Originations. . Lending by life insurance companies remained near last quarter’s record pace, while lending for the GSEs dropped by more than a third according to the report released by Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.
According to the latest Quarterly Index, originations, in the third quarter 2013:
- Revealed volumes 29% higher than in Q3 2012
- The GSEs are down 37% from Q2 to Q3 while being down 3% for the year
- Multifamily is up 20% year-to-date
Originations for the 16 member companies that comprise Q10 Capital showed even better performance with total loan production up 275% from Q3 2012 to just under $1 billion. Q10 Capital’s year-to-date origination volume is up 55% over the first three quarters of 2012. Bob Stout, President and CEO of Q10 Capital said, “We are very pleased with the progress we’ve made this year in improving overall loan originations. Our life insurance company partners continue to be the foundation of our business and they continue to find solid relative value in mortgage investing.” Stout reports that approximately 60% of the company’s origination volume is funded by life companies with CMBS, banks, pension funds and GSE’s making up the balance.
Multifamily and retail continue to be the dominate property types being financed but office and industrial are beginning to pick up as vacancies decline and rents rise in most markets. Stout predicted total 2013 origination for Q10 Capital to top $3.4 billion.