High-interest rate impacts CRE lending

 

Mortgage Bankers Association's (MBA) data revealed originations saw a 54% QoQ decrease in Q4.  The CBRE Lending Momentum Index also revealed a 15% quarterly decline.  According to MBA data, loan volume for industrial properties dropped 69% YoY, a sector affected by high inflation.  After industrial properties, office properties saw the biggest decline in lending, 56%.  Other sectors like multifamily, hotels, and retail saw a decrease of 52%, 46%, and 44%, respectively.  Jamie Woodwell, MBA's head of commercial real estate research, said rising interest rates, property valuation concerns, and economic uncertainty made Q4 the weakest in 2022.