Commercial loans on the rise

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The Research Institute for American Housing reported last week that commercial and multifamily outstanding loans grew to more than $3.1 trillion nationwide.

The $3.121 trillion in commercial/multifamily mortgage debt recorded by the Federal Reserve was an increase of $103.8 billion from the first quarter 2007. Multifamily mortgage debt grew to $778 billion, an increase of $16.1 billion or 2.1 percent from the first quarter.

“These numbers reflect the period preceding the recent changes in the credit markets, and show that investors continued to invest heavily in commercial and multifamily mortgage debt during the second quarter,” said Jamie Woodwell, senior director of commercial/multifamily research.

The study’s authors predict that next quarter’s numbers are likely to show the impact of the recent market disruptions but believe commercial/multifamily fundamentals will remain strong.

Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $1.34 trillion, or 43 percent of the total.

In related news, a recent MBA Research PolicyNote report found that among the top 10 commercial real estate bank lenders, 48 percent of their aggregate balance of commercial (non-multifamily) real estate loans were related to owner-occupied properties.

That’s good news for proposed office and mixed-use projects like the Colorado Springs Airport Business Park, Palmer Village, University Village, CityGate along the Interquest and Woodmen corridors as well as Patriot Park – or future multifamily projects, all of which stand to benefit from continued outside investment capital.