Five out of six property types experienced the originations slump in the fourth quarter. There was a 69% year-over-year decrease in the dollar volume of loans for industrial properties, a 56% decrease for office properties, a 52% decrease for multifamily properties, a 46% decrease for hotel properties, and a 44% decrease for retail properties. Meanwhile, healthcare property loan originations increased by 4% from the previous year.
Among investor types, the dollar volume of loans originated for commercial mortgage-backed securities (CMBS) plunged by 92% annually. There was a 60% decrease for investor-driven lenders, a 53% decrease in life insurance company loans, a 47% decrease for depositories, and a 13% decrease in the dollar volume of Fannie Mae and Freddie Mac loans.
“Depositories were the one major capital source to increase volumes from the previous year, but even its fourth quarter activity was roughly half of what it was a year earlier,” Woodwell said. “The overall picture is one of slower borrowing in the face of what have been significant shifts in the market.”
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