Industrial Properties Post Strong Year-Over-Year Growth in Q1

Lending for industrial assets jumped 66 percent compared to last year, according to MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

Origination Volume Index; 2001 Quarterly Average = 100

Source: Mortgage Bankers Association
Source: Mortgage Bankers Association

Lending for industrial properties jumped 66 percent compared to last year, according to MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

Borrowing and lending for industrial properties bucked the downward trend seen in most other property types in this year’s first quarter compared to the first quarter of 2020.

Overall, commercial and multifamily mortgage loan originations decreased 14 percent in the first quarter of 2021 compared to the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

Although borrowing and lending backed by commercial and multifamily properties was lower than last year’s first quarter, the 14 percent decline was smaller than the year-over-year drops seen at the height of the pandemic-induced economic slowdown.

Compared to last year’s first quarter, lending for industrial properties jumped 66 percent–one of two property types, the other health care–that showed growth.

As the economic recovery and re-opening speeds up, investors and lenders should have greater clarity into which pandemic-led changes are temporary, and which are more permanent. With increased vaccinations; declines in COVID-19-related case counts, hospitalizations and deaths; and more state and local re-openings, conditions are improving for commercial real estate borrowing and lending.

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

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