Commercial & Multifamily Debt Outstanding

Record-setting growth across sectors characterized 2018's first quarter, reported Jamie Woodwell, vice president of commercial real estate research with the Mortgage Bankers Association.

Total commercial/multifamily debt outstanding rose to $3.21 trillion at the end of the first quarter. Multifamily mortgage debt outstanding rose to $1.3 trillion, an increase of $19.3 billion, or 1.5 percent, from the fourth of quarter of 2017.

During the first 3 months of 2018, commercial and multifamily mortgage debt outstanding increased more than during any other Q1 since before the Great Recession. Interestingly, Q1 holdings grew more slowly this year than last among the three largest investor groups: banks, life insurance companies and the GSEs,” commented Mortgage Bankers Association Vice President of Commercial Real Estate Research Jamie Woodwell.

This year’s increase was driven by the CMBS market, which added $6 billion worth of mortgages to its balances. This is a sharp contrast to the $21 billion decline over the same period in 2017.