According to the Mortgage Bankers Association, mortgage originations for commercial and multifamily projects was down during the third quarter of this year by 54 percent compared to the same time in 2008. Retail properties saw a decline of 62 percent, industrial properties were down by 58 percent and office projects dropped by 56 percent.
Jamie Woodwell, MBA's vice president of commercial real estate research, said the difficult credit market along with a decrease in demand translated into a lower number of originations.
"Every investor group and property type saw year-over-year declines in origination volume," Woodwell said.
A recent report from FMI notes the firm expects non-residential construction to fall by 13 percent this year. It expects that decline to continue through 2010, when it expects a 16 percent drop. Though FMI sees residential construction falling by 25 percent this year, it does expect it to make some gains in 2010. A rebound in the commercial market should follow a bounce back in the residential market by 12 to 18 months.
