Increase in Loan Originations for Commercial Real Estate

WASHINGTON, DC-The year 2004 has gotten off to a better start in loan originations than the year 2003, according to the Mortgage Bankers Association. The organization has just released its quarterly commercial and multifamily loan originations survey for the first quarter of 2004, and the numbers show a 2.8% rise in loan originations over the first quarter of 2003. That figure accounts for a $562 million increase, bringing the total amount of originations for the period between January 1 and March 30 of this year to $20.9 billion.

As per the report, originations for office properties saw a 29% growth over 2003, and there was a 31% increase in retail property loan starts for the corresponding period. The multifamily sector, however, is not showing similar signs of health, recording a 13% drop in originations over the same timeframe in 2003. Of course, given the usual year-end rush to close deals, first quarter numbers pale in comparison to those of the previous quarter, the fourth quarter 2003, but that is to be expected.