Costar & MBA Reporting Significant Rise in Commercial Lending

Commercial Lending Bounces Back In 2010- CoStar.com

  • 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- WSJ.com

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.  
     

Comments

  1. Owen R. Flinn

    2/18/11

    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.

    Thanks,

    Ronie Flinn

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