Commercial/multifamily mortgage market sees huge growth

“The increase in holdings by depositories was the largest on record,” said Jamie Woodwell, VP of commercial real estate research at MBA. “The data match the fact that the first half of 2022 saw more commercial and multifamily borrowing and lending than any previous January through June period.”

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The report also showed changes in dollar terms from the first quarter. Commercial banks gained $51.9 billion (3.2%) in their commercial/multifamily mortgage debt holdings. REITs grew their holdings by $22.3 billion (14.4%), life insurance companies increased their holdings by $13.1 billion (2.1%), and agency and GSE portfolios and MBS increased their holdings by $8 billion (0.9%).

“Given a variety of changes in space, equity, and debt markets since the start of the year, we expect the pace to slow considerably in coming quarters,” Woodwell said.