The retail sector can’t seem to buy a break these days. With 8,600 brick-and-mortar stores may close their doors in 2017, lending was expected to decline.
According to the Mortgage Bankers Association, commercial/multifamily originations rose 9% from Q1 2016.
That is the good news.
The bad news? 1) Retail originations fell 23% from Q1 2016. 2) CMBS/Conduit originations were down 17%. 3) Hotel originations were down 40%.
The good news? 1) Healthcare originations were up 22%. 2) Industrial originations were up 40%. 3) Multifamily originations were up 14%.
Notice that Fannie Mae/Freddie Mac multifamily origination programs were up 33% from Q1 2016. At the same time, Life Insurance Companies saw 0% growth in commercial/multifamily originations.
Thanks to The Federal Reserve, short-term interest rates remain suppresed and have for the last ten years.
Office originations grew at a listless 2% from Q1 2016. On-line retailers like Amazon have helped shrinked the retail footprint. But will shared office space and the internet finally drive a spike through office space when employees can work remotely?