Commercial mortgages are an increasingly lucrative business and these latest Canadian statistics may draw a few more players to the game.
The commercial mortgage market reached $185 billion according to CMLS
Financial’s 2013 survey, with originations accounting for $39 billion in 2013. These numbers represent an increase of eight per cent in outstanding balance and an 18 per cent production jump year over year.
Conversely, 2012 saw $33 billion in commercial mortgage originations and an outstanding balance of $172 billion.
"Mortgage lending data is challenging to assemble without the support of the industry," Mark Achtemichuk, VP and managing director at CMLS Financial says in an official release. "We feel privileged to have their confidence to help provide this valuable intelligence."
CMLS has conducted the annual survey for four years and it includes the 26 lender participants as well as data on CMBS, MBS and NHA issuance.
According to the survey, renewal rates fell in 2013, which the lender attributes to increased competition within the sector.
The survey also found that senior unsecured and CMBS are the “primary threats to origination volumes,” with both seeing five-year issuance highs in 2013. The trend is expected to continue.
The purpose of the survey is to “help accumulate information on the size and composition of the Canadian commercial mortgage market, quantify annual originations, and gauge industry sentiments heading into the new year,” according to CMLS.