CRE Debt Increase Hits 8-Year High

Woodwell says multifamily mortgage debt grew at the fastest pace since 1993.

WASHINGTON, DC—Commercial and multifamily mortgage debt outstanding at Dec. 31 increased at the fastest year-over-year pace since the peak of the previous cycle, the Mortgage Bankers Association said Monday. At the same time, though, the increase has not been uniform across all lending types.

“During 2015, commercial and multifamily mortgage debt grew by the largest amount since the series began in 2007; multifamily mortgage debt grew at the fastest pace since that series began in 1993; and the amount of commercial and multifamily mortgage debt held in agency and GSE portfolios and MBS, and on bank balance sheets, grew more than in any previous year on record,” says Jamie Woodwell, VP of commercial estate research at MBA. “At the same time, the amount of mortgage debt held in CMBS continued to decline. While 2015 marked many new records, recent market and regulatory changes have the potential to impact the availability of commercial and multifamily mortgage debt during 2016.”