CRE Loan Originations Expected to Fall By 40%

While the capital markets are moving again, loan activity has been significantly impacted by the pandemic. Commercial loan originations will likely fall by 40% this year compared to 2019 activity.

“Though the capital markets have certainly been disrupted by the COIVD-19 pandemic, there remains healthy activity and allocations from all major lending sources, albeit with lowered expectations for volume and a more conservative appetite for leverage and asset class,” J.D. Blashaw, VP at MetroGroup Realty Finance, tells GlobeSt.com. “According to the Mortgage Bankers Association, commercial and multifamily loan volumes are expected to decrease by 40% in 2020 compared to 2019 when originations topped $600 billion, a peak since the last global financial crisis.”