Banks and life insurance companies stepped up lending on commercial properties in the third quarter of this year, according to the most recent survey from the Mortgage Bankers Association (MBA), an industry trade group. And retail was among the more favored asset classes, with the MBA’s origination volume index for retail properties increasing 164 percent from the third quarter of 2010. The only asset type to experience a greater origination uptick was hospitality, with a 406 percent change from the third quarter of last year.

What’s more, loan originations for retail properties increased 37 percent between the second and third quarters of 2011. The average loan size on retail assets also went up to $20.9 million, from $15 million in the first quarter.

The MBA reports that its origination volume index for loans made by commercial banks jumped 433 percent year-over-year to 169. The index uses the average origination volume per quarter in 2001 as its 100 mark. The origination index for loans made by life insurance companies went up 61 percent during the most recent quarter, to 282.

 

 

-- Retail Traffic Magazine (Read More Here)