MBA Reports Multifamily Originations Down in Q4

This adds to Grubb & Ellis prediction's (previous post) showing tighter lending standards and falling demand for commercial real estate.

MBA Reports Multifamily Originations Down in Q4

Commercial and multifamily mortgage bankers' loan originations fell on a
year-over-year basis in the fourth quarter, according to the Mortgage Bankers
Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Fourth quarter originations were sixteen percent lower than during the same period last year.

The year-over-year decrease was seen across most property types and investor groups....The decrease in commercial/multifamily lending activity during the fourth quarter was driven by decreases in originations for most property types. When compared to the fourth quarter of 2006, the overall decrease included a 73 percent decrease in loans for office properties, a 50 percent decrease in loans for industrial properties, an 38 percent decrease in loans for retail properties, an 7 percent decrease in loans for multifamily properties, as well as a 349 percent increase in loans for hotel properties and a 3 percent increase in loans for health care properties. The increase in hotel originations was heavily influenced by large portfolio sales
during the period.