Under pressure to find good use for their money and encouraged by gradually improving property fundamentals, banks and life insurance companies upped their investments in commercial real estate in 2012. A stronger than expected thaw in CMBS lending has created a further incentive for senior lenders to become more aggressive on commercial mortgages, leading to hopes of even more robust lending activity in 2013.
While the Mortgage Bankers Association (MBA), an industry trade group, reported a 7 percent year-over-year drop in all commercial/multifamily loan originations in the third quarter of 2012, commercial banks increased their origination volume by 8 percent. Through the first three quarters of the year, banks increased their lending volume by 44 percent, according to the MBA, though life insurers’ loan volume fell 6 percent.
Read more...Facing Few Investment Alternatives, Senior Lenders Seek CRE Deals
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