By property type, MBA says increases in originations for industrial and office properties led the overall increase in commercial/multifamily lending volumes when compared to the year-ago period. Q2 saw the dollar volume of loans for industrial properties increase a whopping 91% Y-O-Y and 39% over Q1, while office originations were up 33% for the year-ago period and 39% from Q1.

Multifamily originations were up 21% from a year ago and 25% from Q1. Loans for hotel properties were up 14% Y-O-Y and 139% from Q1, while health care property originations rose 7% Y-O-Y but were down 34% from the previous quarter. The only sector to see a Y-O-Y decline ion originations was retail, down 9% from a year ago although up 34% on a quarterly basis.

Among lending classes, the dollar volume of loans originated for CMBS increased by 168% Y-O-Y, according to MBA. There was a 26% Y-O-Y increase for Fannie Mae and Freddie Mac, a 2% Y-O-Y decrease in originations by life insurance companies and a 21% decrease in the dollar volume of commercial bank portfolio loans.

On a quarter-over-quarter basis, the dollar volume of loans for CMBS increased 117%, loans for life companies were up 25%, originations for GSEs increased 22% and loans for commercial bank portfolios decreased by 5%. On a year-to-date basis, CMBS volume is up 57% from the first half of '16, life company originations are lower by 1% from a year ago, dollar volume for GSE loans is up 29% and commercial bank originations are off 7% from the year-ago period.

WASHINGTON, DC—Second-quarter commercial and multifamily mortgage loan originations were 20% higher than during the same period last year and up 28% over Q1 of 2017, the Mortgage Bankers Association said Tuesdays. The results of MBA's latest Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations compared favorably with Q2 results over the past few years.

Q2 of 2016 saw a year-over-year increase of 1% and a rise of 17% over the previous quarter. In 2015, the Y-O-Y and quarter-over-quarter increases for Q2 were 29% and 16%, respectively. Loan originations were down 2% Y-O-Y in Q2 of 2014, but up 34% from Q1. MBA's origination volume index, which uses 2001 as a baseline, gives Q2 of this year an index of 254, compared with 212 a year ago.

“Borrowing and lending backed by commercial and multifamily properties has been strong the first half of this year,” says Jamie Woodwell, VP of commercial real estate research at MBA. ”Reflecting broad industry trends, borrowing backed by industrial properties increased by two-thirds compared to the first half of 2016, while borrowing backed by retail properties dropped by one-sixth.

“As was the case during the first quarter, commercial/multifamily mortgage bankers' originations increased despite a slowdown in the volume of sales transactions,” Woodwell adds. Real Capital Analytics reported last week that US deal activity was down 5% in Q2 from the year-ago period, as it had dropped 23% Y-O-Y in Q1, and said Tuesday that pricing in its US National All-Property Composite index for June was up 0.9% from the previous month and 7.9% Y-O-Y.

By property type, MBA says increases in originations for industrial and office properties led the overall increase in commercial/multifamily lending volumes when compared to the year-ago period. Q2 saw the dollar volume of loans for industrial properties increase a whopping 91% Y-O-Y and 39% over Q1, while office originations were up 33% for the year-ago period and 39% from Q1.

Multifamily originations were up 21% from a year ago and 25% from Q1. Loans for hotel properties were up 14% Y-O-Y and 139% from Q1, while health care property originations rose 7% Y-O-Y but were down 34% from the previous quarter. The only sector to see a Y-O-Y decline ion originations was retail, down 9% from a year ago although up 34% on a quarterly basis.

Among lending classes, the dollar volume of loans originated for CMBS increased by 168% Y-O-Y, according to MBA. There was a 26% Y-O-Y increase for Fannie Mae and Freddie Mac, a 2% Y-O-Y decrease in originations by life insurance companies and a 21% decrease in the dollar volume of commercial bank portfolio loans.

On a quarter-over-quarter basis, the dollar volume of loans for CMBS increased 117%, loans for life companies were up 25%, originations for GSEs increased 22% and loans for commercial bank portfolios decreased by 5%. On a year-to-date basis, CMBS volume is up 57% from the first half of '16, life company originations are lower by 1% from a year ago, dollar volume for GSE loans is up 29% and commercial bank originations are off 7% from the year-ago period.