Costar & MBA Reporting Significant Rise in Commercial Lending

Commercial Lending Bounces Back In 2010-

  • 2010 Commercial Real Estate (CRE) loans up 36 percent over 2009
  • $110 Billion of CRE loan originated in 2010 by Mortgage Bankers (both purchase and refi)
  • Life companies now the largest source of lending with 2010 activity up 155 percent from 2009
  • 2010 CMBS Originations up by more than a factor of 10 compared to 2009
  • CB Richard Ellis Group marked a 233 percent increase in their mortgage business
  • Wells Fargo number one commercial and multifamily servicer with $451.1 billion followed by PNC at number two with $337.4 billion, Berkadia Commercial Mortgage at $194.9 billion, B of A Merrill Lynch at $126.6 billion and KeyBank at $118.9 billion.

This is a fact and data-packed article that should be considered required reading.

Commercial Real Estate Coming Back, but Unevenly-

The Wall Street Journal reports that not all of the markets, however, are recovering at the same levels.  

  • Many smaller cities and the suburbs do not have adequate cash flow to even service the loan – the delinquency rate on CMBS loans is up from 1 percent in 2007 to a massive 9.34 percent today
  • The rise in value is often not accompanied by increased rents or occupancies, but rather a reduction in the cap rate and/or an increase in the quality (economically speaking) of the tenant(s)
  • Everything is tied in the long-run to jobs, and the miniscule 36,000 added in January 2011 does not warrant broad-based recovery.  


  1. Owen R. Flinn


    Dr. Jones,

    As always we enjoyed your talk last Friday in McAllen.

    We also were glad to get your blog address and have entered it as a favorite.


    Ronie Flinn

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