U.S. Commercial, Multifamily Mortgage Debt Grew in Late 2019

WORLD PROPERTY JOURNAL | March 18, 2020

U.S. Commercial, Multifamily Mortgage Debt Grew in Late 2019
According to the Mortgage Bankers Association's latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report, the level of U.S. commercial and multifamily mortgage debt outstanding at the end of 2019 was $248 billion (7.3 percent) higher than at the end of 2018.  MBA's report found that total mortgage debt outstanding in the final three months of 2019 rose by 2.1 percent ($75.0 billion) compared to last year's third quarter, with all four major investor groups increasing their holdings. Multifamily mortgage debt grew by $30.4 billion (2.0 percent) to $1.53 trillion during the fourth quarter, and by $116.7 billion (8.2 percent) for the entire year. "In 2019, the amount of mortgage debt backed by commercial and multifamily properties grew by the largest annual amount since before the Global Financial Crisis," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Every major capital source increased their holdings, and some by double digits. Continuing the recent trend, the growth in multifamily mortgage debt outpaced that of other property types." Added Woodwell, "Looking ahead, a key question will be how the coronavirus and related economic shocks will affect the market's momentum in 2020. At this point it is still too early to tell."

Spotlight

Drawing on the historical trajectory and evolution of several of today’s most promising technologies, this white paper addresses automation and the future of work; business disruption via technologically driven process innovation; and the corresponding evolution of property, location and services to adapt to these changes. Highlighted technologies include: open-source platforms, distributed ledgers (blockchain), e-commerce and fintech, big data, artificial intelligence and cyber-physical systems (through the lens of autonomous vehicles). What these technologies have in common is that they operate through distributed networks and, as a result, redistribute places where work gets done. This white paper is the second in a series examining emerging technologies, particularly those that are relevant to the real estate sector.

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Spotlight

Drawing on the historical trajectory and evolution of several of today’s most promising technologies, this white paper addresses automation and the future of work; business disruption via technologically driven process innovation; and the corresponding evolution of property, location and services to adapt to these changes. Highlighted technologies include: open-source platforms, distributed ledgers (blockchain), e-commerce and fintech, big data, artificial intelligence and cyber-physical systems (through the lens of autonomous vehicles). What these technologies have in common is that they operate through distributed networks and, as a result, redistribute places where work gets done. This white paper is the second in a series examining emerging technologies, particularly those that are relevant to the real estate sector.