Quarterly commercial mortgage production moved higher. Office property loans and mortgages acquired by the government-sponsored enterprises led the gain.
The origination of commercial real estate loans from July 1 through Sept. 30 jumped 18 percent from the second quarter.
Commercial mortgage production was up nearly as much from the third-quarter 2013, with volume rising 16 percent from the year-earlier period.
The numbers were outlined in the Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations Q3 2014 from the Mortgage Bankers Association.
Based on previously reported CRE origination data from MBA, third-quarter 2014 volume was around $101.9 billion, jumping from $86.6 billion three months earlier and $87.6 billion a year earlier.
Mortgage Bankers Association Vice President of Commercial Real Estate Research Jamie Woodwell attributed the improvement from the second quarter to “low rates coupled with growth in property incomes, property values and sales transactions.”
In the nine months ended last month, commercial mortgage originations amounted to roughly $252.9 billion.
Volume at Fannie Mae and Freddie Mac surged 57 percent from the second quarter — more than any other lender type. CRE originations at the secondary lenders soared 118 percent compared to the third-quarter 2013 — the biggest year-over-year gain.
Production for commercial mortgage-backed securities and conduits moved up 10 percent from the prior period and was 47 percent higher than in the year-earlier period.
A 9 percent gain over the second quarter was tracked for life insurance companies, while the sector raised activity by 1 percent from the same quarter in 2013.
Commercial banks, however, lost ground, with business falling 7 percent on a quarter-over-quarter basis and tumbling 16 percent on a year-over-year basis.
Office loan production leapt 43 percent from the second quarter — the most of any property type — and increased 11 percent from the third-quarter 2013.
A 31 percent gain over the second quarter was made on multifamily loans. Multifamily lenders lifted activity 41 percent from a year prior.
Next were industrial property loans, rising 19 percent from the prior period and up 22 percent from the same quarter in 2013.
Retail property loan originations were up 7 percent from the prior period and gained 11 percent from the year-earlier period.
Hotel loan originations decreased 11 percent, though a 4 percent rise was recorded compared to same quarter last year.
The origination of health care property loans sank 24 percent versus the second quarter and plummeted 43 percent from the same three-month period last year.
