Commercial Real Estate Lending Spiked in The Fourth Quarter

Commercial-real-estate lending spiked in the fourth quarter of 2010, registering the largest quarter-over-quarter increase in new mortgages tied to commercial property since mid-2007, according to estimates released this week by the Mortgage Bankers Association.
In all, commercial mortgage originations were up 63% over the prior quarter, according to the MBA's originations index, which is based on a survey of lenders. In sum, 2010 saw $110 billion in originations of commercial mortgages—which include hotels, multifamily apartment buildings, retail and office—still a far cry from the $508 billion seen in 2007.
The market for commercial-real-estate lending, once frozen, has been thawing for the past half-year, as prices have risen some, particularly in major markets.

By ELIOT BROWN