“Every major capital source increased its holdings of commercial mortgages, as fewer loans than usual were paid off through property sales or refinancings,” said Jamie Woodwell, head of commercial real estate research at MBA
MBA’s report said commercial banks remained the largest holders of commercial/multifamily mortgages at $1.8 trillion or 38% market share. Federal agencies and government-sponsored enterprises hold $1.01 trillion (22%), followed by life insurers at $720 billion (15%) and commercial mortgage-backed securities at $604 billion (13%).
Looking solely at multifamily mortgage debt, agencies and GSEs held the largest $1.01 trillion share (48%), trailed by banks at $620 billion (30%) and life insurers at $230 billion (11%).
In the first quarter, banks saw commercial/multifamily mortgage holdings increase by $12.8 billion, the largest gain in dollar terms. CMBS issuers increased holdings by $11.0 billion, while agencies/GSEs and life insurers grew by $10.2 billion and $7.0 billion, respectively.
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