WASHINGTON, DC—The third quarter was notable in the commercial/multifamily mortgage space for one key development. That was the reversal of a decade-long downward trend in CMBS' holdings, which rose by 0.8% or $3.6 billion from Q2, according to Mortgage Bankers Association data. Overall, Q3 saw commercial/multifamily mortgage debt outstanding increase by $45.4 billion, or 1.5%, to $3.11 trillion.

“The third quarter marks a significant turning point for the CMBS market,” says Jamie Woodwell, VP of commercial real estate research at MBA. “With only a few exceptions, since 2008, the balance of commercial and multifamily mortgages held in CMBS has declined each quarter. That years-long trend ended this quarter.”

With the so-called “wall of maturities” now largely demolished, and given a “vibrant” market for new originations, “we are once again seeing more new loans being originated for CMBS than we are seeing in old loans paying off and paying down,” Woodwell continues. “The result is the largest increase in outstanding CMBS mortgages since the end of 2007.”