Commercial Mortgage Debt Holdings Increase

Banks continue to account for the largest share, according to MBA's latest report.

$ in billions

Source: Mortgage Bankers Association

The late summer months of 2021 were very active for commercial/multifamily borrowing and lending.

The level of commercial/multifamily mortgage debt outstanding increased by $64.8 billion (1.6%) in the third quarter of 2021, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

Every major investor group increased their holdings of commercial mortgages during the third quarter, as many property types have healed considerably since the shutdowns at the onset of the COVID-19 pandemic in early 2020.

Commercial banks continue to hold the largest share (38%) of commercial mortgages at $1.5 trillion. Agency and GSE portfolios and MBS are the second largest holders of mortgages (22%) at $885 billion. Life insurance companies hold $609 billion (15%), and CMBS, CDO and other ABS issues hold $564 billion (14%). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues.

In percentage terms, REITs saw the largest increase at 7.7 percent in their holdings of mortgages. Conversely, private pension funds saw their holdings decrease 4.9 percent.

 Strong interest from both borrowers and lenders is likely to continue to drive increases in commercial mortgage debt for office and industrial properties in 2022.


Jamie Woodwell is the Mortgage Bankers Association’s vice president of commercial real estate research.

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