A Record $601B in CRE Loans Closed in 2019

Before COVID-19 hit, the commercial real estate lending market was sure on a strong run.

A record $600.6 billion of commercial real estate and multifamily loans in 2019, according to the Mortgage Bankers Association’s (MBA) 2019 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

Commercial banks were the top capital source for originated loans in 2019, responsible for $179.8 billion of the total. The government sponsored enterprises (GSEs)  — Fannie Mae and Freddie Mac) had the second highest volume at $139.1 billion Making up a majority of the rest were commercial mortgage-backed securities issuers (CMBS), life insurance companies and pension funds, real estate investment trusts (REITs) and other sources.

Apartment properties had the highest volume of mortgage bankers’ origination volume at $287.2 billion, followed by office buildings, industrial properties, retail, hotels/motels, and health care.

“2019 was a record year for commercial and multifamily mortgage originations – the third year in a row and likely the last of that string,” said Jamie Woodwell, MBA’s vice president of commercial real estate research, said in a press release. “Every capital source had a strong appetite to place money, and property fundamentals, values and interest rates all provided considerable tailwinds for borrowing and lending, which carried into the start of this year.”