Commercial Real Estate News Wrap Up From Liberty SBF

November 23, 2016

Good news – third quarter loan originations were up 5% compared to the year-ago quarter and up 7% as compared to Q2 2016, according to a report published by CoStar. Even better news – commercial mortgage backed securities enjoyed their own jump in Q3, with a 32% year-over-year increase in the dollar volume for industrial properties and a 26% spike for multifamily. Other real estate sectors such as office and retail saw slight drops in lending volume, perhaps pointing to the trend of growing concentration of CRE loans by lenders.

After the recent elections, there’s a lot left that the commercial real estate wants to know, as published in a recent article by Globest.com. Questions from the commercial real estate community include what the budget would be for next fiscal year, Trump’s plans to unwind the Affordable Care Act, and what the regulatory scale-back would look like when it begins. As for the Washington DC commercial real estate market, Bill Collins of Cushman and Wakefield is bullish, believing that the GOP control of both the presidency and Congress is going to be beneficial in boosting the local economy.

Banks have tightened standards on CRE loans during Q3 but have left lending practices for commercial and industrial loans virtually unchanged. According to a recent survey of loan officers released by the U.S. Federal Reserve, “significant net fractions of banks reported tightening standards for construction and land development loans and loans secured by multifamily residential properties.” This survey covered the responses of 69 domestic banks and 21 U.S. branches of foreign banks, showing a growing trend towards regulation within the whole market.

8 + 1 (That’s 9) Things You Need To Know About CRE Right Now!