Commercial and Multifamily Mortgage Maturity Volumes Increase 33 Percent in 2023
San Diego (February 13, 2023) — $331.2 billion of the $2.8 trillion (12 percent) of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2023, which is a 33 percent increase from the $249 billion that matured in 2022. This is according to the Mortgage Bankers Association’s (MBA) 2022 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, released today at the 2023 Commercial/Multifamily Finance Convention and Expo.
“Commercial and multifamily mortgages tend to be relatively long-lived in nature. In 2023, only one-in-eight dollars of non-bank-held CRE loans will be maturing this year,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research. “Some property types, in particular hotels, motels, and offices, have higher shares of their debt coming due in the near term, while others, such as multifamily, have lower shares. Among capital sources, investor-driven lenders and the CMBS market have more of their loans coming due in the near-term while life companies, the GSEs, and FHA have fewer.”
Added Woodwell, “Given current dislocations in the market, loan maturities will be a key mechanism that will force adjustments to changes in interest rates and property values since those loans were originally made.”
The loan maturities vary significantly by investor and property type groups. Just $13.9 billion (2 percent) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA, and Ginnie Mae will mature in 2023. Life insurance companies will see $42.2 billion (7 percent) of their outstanding mortgage balances mature in 2023. By contrast, $163.3 billion (22 percent) of the outstanding balance of mortgages in CMBS, CLOs or other ABS, and $111.8 billion (26 percent) of the mortgages held by credit companies, in warehouse or by other lenders will mature in 2023.
By property type, 5 percent of non-bank mortgages backed by multifamily properties will mature in 2023, as will 11 percent of those backed by retail and healthcare properties. Among loans backed by industrial properties, 16 percent will come due in 2023, as will 22 percent of office loans and 32 percent of hotel/motel loans.
The dollar figures reported are the unpaid principal balances as of December 31, 2022. Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here. This survey covers $2.76 trillion of commercial and multifamily mortgages held or insured by life companies, Fannie Mae, Freddie Mac, FHA, CMBS trusts, and other non-bank lenders and investors. Banks and thrifts hold an additional $1.7 trillion in mortgages backed by income producing properties which are not covered by this report.
To learn more or to purchase a copy of the report, please visit: http://www.mba.org/loanmaturityvolumes