In 2022, commercial real estate (CRE) mortgage borrowing and lending totaled $816 billion, an 8% decrease from the record-breaking $891 billion in 2021 but a 33% increase from 2020’s figure of $614 billion. This data was revealed by the Mortgage Bankers Association’s (MBA) Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.
Jamie Woodwell, MBA’s head of commercial real estate research commented that “borrowing and lending backed by CRE properties started off strong at the beginning of 2022 but then decreased due to rising interest rates, uncertainty about property values, and increased questions about economic performance as well as some property fundamentals.” Despite this 8% annual decline in total volume, however, it still remained the second highest on record with bank lending increasing by 12%, amounting to a total of $409 billion.
Woodwell concluded his statement with “A key question for 2023 is when will market conditions have stabilized enough for new deal activity to break through?”.
