Commercial real estate sales in Tucson is impacted by Commercial Loans and availability

Commercial real estate sales in Tucson is impacted by Commercial Loans and availability.  Up over the Quarter relatively flat on Year over Year! Commercial loans rise sharply in Q2, down year over year Commercial originations rose 34 percent in the second quarter but are down 2 percent year over year primarily because of drop off in retail, multifamily and office loans, the Mortgage Bankers Association (MBA) reported in its quarterly survey. “Year-to-date borrowing by commercial and multifamily real estate owners is running at the same pace as last year,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, in a news release.  “Low interest rates and improving property fundamentals are prompting borrowers to act, but the relatively low volume of loans hitting maturity is checking overall demand.” MBA reported that retail and multifamily are down 10 percent each compared to Q2 2013, while office originations have declined by 6 percent. That was offset by a 20-percent increase in industrial loans, a 45-percent increase in hotel property loans and a 95 percent increase in health care property loans. Among investor types, life insurance and Fannie Mae-  and Freddie Mac-loans decreased  by 13 percent as compared to Q2 2013, while commercial bank portfolio loans and CMBS loans jumped 19 percent and 45 percent, respectively, MBA reported.

Questions? Contact Victor Whitman at (425) 984-6017 or victorw@scotsmanguide.com.