(Correction from MBA– GSE volume up from Q2)
The Mortgage Bankers Association said today commercial real estate loans nationwide fell 4% for all types of real estate in the third quarter vs. a year ago and 30% vs. the second quarter of this year.
Here’s more on drop from year ago (CMBS is commercial mortgage backed security):
“The decrease in commercial/multifamily lending activity during the third quarter was driven by decreases in originations for most property types. When compared to the third quarter of 2006, the overall decrease included a 31 percent decrease in loans for office properties, a 20 percent decrease in loans for retail properties, an 18 percent decrease in loans for hotel properties, an 8 percent decrease in loans for industrial properties, as well as a 149 percent increase in loans for health care properties and a 14 percent increase in loans for multifamily properties.
Among investor types, conduits for CMBS saw a decrease of 28 percent compared to last year’s third quarter. There was also an 18 percent decrease in loans for commercial bank portfolios, as well as an 11 percent increase in loans for life insurance companies. The dollar volume of loans for Government Sponsored Enterprises (or GSEs - Fannie Mae and Freddie Mac) remained the same.”
Here’s more on the drop from Q2:
“Among investor types, conduits for CMBS saw a decline in loan volume of 66 percent compared to the second quarter of 2007, loans for the GSEs saw a 61 percent increase from second quarter to third quarter 2007 while loans for life insurance companies increased 27 percent, and loans for commercial banks increased 9 percent.
Compared to the second quarter, third quarter originations decreased in all property types except health care. The decline included a 72 percent decrease in loans for hotel properties, a 43 percent decrease for retail properties, a 37 percent decrease for office properties, a 13 percent decrease for industrial properties, a 10 percent decrease for multifamily properties, and a 136 percent increase in loans for health care properties.“
