QDB QDB Q - Mortgage Bankers Association Quarterly... · Treasury Yield Curve Percent Source:...

QDQ1Q1BQDB

COMMERCIAL / MULTIFAMILY QUARTERLY DATABOOK | Q1 2015

mba.org/research15191

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15191

COMMERCIAL / MULTIFAMILY QUARTERLY DATABOOK Q1 2015

Treasury Yield Curve Percent

Source: Federal Reserve Board

Multifamily Permits, Starts and Completions Thousands, Seasonally adjusted annual rate

Source: Census Bureau

First Quarter 2015

Selected Charts

Month-over-month Change in At-Place Employment Thousands of jobs

Source: Bureau of Labor Statistics

Ten-year Treasury and 10-year Swaps Percent

Source: Federal Reserve Board

Commercial/Multifamily Mortgage Bankers Originations Index 2001 quarterly average = 100

Source: MBA

Value of Construction Put-In-Place

Source: U.S. Census Bureau

Commercial/Multifamily Property Sales $Billions

Source: Real Capital Analytics

Average Vacancy Rates By Property Type

Source: REIS

Price Indices December 2000 = 100

Source: MBA, Moody's Investors Services, National Council of Real Estate Investment Fiduciaries, and Green Street Advisors

The Commercial Real Estate/ Multifamily

Finance Quarterly Data Book is a quarterly compendium of the

latest MBA research on the

commercial/multifamily finance markets. The latest version of the Data Book can be

downloaded from the MBA website at:

http://www. mba.org/crefresearch

MBA Commercial Real Estate/ Multifamily Finance Quarterly Data Book First Quarter 2015 June 30, 2015 SELECTED CHARTS ................................................................................................................................................. 5 TABLE OF CONTENTS ........................................................................................................................................... 7 1. OUTLOOK

Introduction .......................................................................................................................................................... 9 Economic Commentary .................................................................................................................................. 12 MBA Economic Forecast ................................................................................................................................ 15 Treasury Yields and Bank Rates .................................................................................................................. 16 Employees on Non-farm Payrolls ................................................................................................................ 18 Monthly Retail Sales ........................................................................................................................................ 20 Owner- and Renter-Occupied Housing Units ........................................................................................ 22

2. COMMERCIAL/MULTIFAMILY FINANCE ENVIRONMENT

Extract of Commercial Real Estate Comments from The Federal Reserve Board’s Beige Book ....................................................................................... 24 New Inventory Change Less Net Absorption for Commercial/Multifamily Properties ................................................................................................... 27 Average Rents and Vacancy Rates at Commercial/Multifamily Properties ............................. 29 Multifamily Building Permits, Starts and Completions ........................................................................ 31 Value of Construction Put-In-Place ........................................................................................................... 34 Commercial/Multifamily Property Sales Volume ................................................................................. 38 Commercial/Multifamily Prices and Capitalization Rates ................................................................ 40 Commercial/Multifamily Property Price Indices ................................................................................... 42

3. PRODUCTION

Quarterly Mortgage Banker Originations Survey ................................................................................. 44 Commercial Mortgage Backed Securities (CMBS) and Commercial Real Estate Collateralized Debt Obligation (CRE CDO) Issuance .......................................... 48 American Council of Life Insurers (ACLI) Commitment Volumes ................................................. 50

4. COMMERCIAL MORTGAGE DEBT & REAL ESTATE SECURITIES OUTSTANDING

Commercial/Multifamily Mortgage Debt Outstanding ...................................................................... 52 Commercial/Multifamily Mortgage Delinquencies by Investor Group ......................................... 69 Commercial Mortgage-Backed Securities (CMBS) Outstanding ................................................... 74 Commercial Mortgage Backed Securities (CMBS) Spreads ............................................................ 77

5. SERVICING

Commercial/Multifamily Mortgage Servicers, Year-End 2014 ........................................................ 79

6. RECENT MBA COMMERCIAL/MULTIFAMILY RESEARCH RELEASES ................................... 98

OUTLOOK OUTSTANDINGENVIRONMENT SERVICINGPRODUCTION RELEASES


© Mortgage Bankers Association June 2015. All rights reserved.

1. Outlook Introduction THE ECONOMY The United States gross domestic product - the measure of the value goods and services produced - shrank at a real, seasonally adjusted annual rate of 0.2 percent in the first quarter. Most economists chalk the decline up to a series of temporary factors including the rapid appreciation of the US dollar, lower exports, bad weather as well as trade and inventory disruptions on the West Coast. (There is also evidence that Q1 GDP figures have systematically been pushed downward by reporting problems.) Data on retail sales, factory orders, payroll growth, and unemployment claims appear to paint a stronger picture of growth. During the first quarter interest rates mirrored the low GDP numbers, with the ten-year Treasury averaging 1.88 percent in January, 1.98 percent in February and 2.04 percent in March. Rates have tipped upward more recently, averaging 2.20 percent in May and most observers expect the Federal Reserve to begin raising short-term rates later this year. PROPERTY MARKETS With relatively little new commercial real estate space coming online, economic growth has continued to filter through and tighten fundamentals for most property types. Vacancy rates for office properties fell from 16.9 percent in Q1 2014 to 16.6 percent in Q1 2015, and retail vacancy rates fell from 10.4 percent to 10.1 percent. Multifamily vacancy rates, which have been extremely low, rose slightly from 4.1 percent to 4.2 percent. The tight and tightening markets have supported rents. On a year-over-year basis, average asking rents rose 1.9 percent for retail properties, 3.2 percent for office properties and 3.3 percent for apartment properties. In response to the tightening markets, new commercial and multifamily construction

activity has picked up, but for most property types remains at relatively low levels. The value of new office construction put-in-place in April doubled from its recession-low, but remains 25 percent lower than its pre-recession levels. Construction of "commercial" properties, which includes retail and warehouse, is 78 percent higher than recession lows, but still 32 percent below pre-recession levels. Construction of manufacturing properties has regained pre-recession levels. Multifamily construction has also surged. The value of multifamily construction put-in-place in April was three times its recession-lows and just 7 percent below pre-recession levels. Multifamily starts are at a pace that should easily exceed 300,000 units this year, and in May, the pace of multifamily permitting surged to an annual pace of 557,000 units. Except for three months during the mid-1980s, the number of multifamily units under construction is at its highest level since the mid-1970s. Supply is clearly reacting to tight market conditions. SALES ACTIVITY Property sales activity was brisk in the first quarter, with $111 billion of transactions among the major property types, 45 percent more than traded in the first quarter of 2014. Property transactions rose 5 percent for retail properties, 43 percent for office properties, 68 percent for apartment properties and 97 percent for industrial properties. With strong investor demand, price per square foot increased and cap rates decreased for every major property type. Average cap rates for apartments fell from 6.1 percent in the fourth quarter to 5.9 percent in the first quarter, for retail fell from 6.6 percent to 6.4 percent, for office fell from 6.8 percent to 6.5 percent and for industrial fell from 7.0 percent to 6.9 percent.

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Property prices have now, on average, more than regained the losses from the recession. During the first quarter, the Moody's/Real Capital Analytics commercial property price index rose 4.7 percent and the NCREIF index rose 0.2 percent. ORIGINATIONS In terms of mortgage originations, the year-end momentum from 2014 carried into the first quarter of 2015, with year-over-year growth in lending for every major property type. Multifamily lending was a key driver of first quarter originations and the GSEs drove multifamily. The GSEs' multifamily originations increased by 306 percent compared to Q1 2014, marking their second highest quarter on record, while multifamily originations for other capital sources appear to have remained flat or declined. First quarter 2015 commercial and multifamily mortgage loan originations were 49 percent higher than during the same period last year. Following the usual seasonal pattern, first quarter 2015 originations saw a 26 percent decrease from the fourth quarter of 2014. Increases in originations for industrial and multifamily properties led the overall increase in commercial/multifamily lending volumes when compared to the first quarter of 2014. The increase included a 269 percent increase in the dollar volume of loans for industrial properties, a 71 percent increase for multifamily properties, a 53 percent increase for office properties, a 51 percent increase for hotel properties, and a five percent increase in retail property loans. Health care property loans were essentially unchanged year-over-year. Among investor types, the dollar volume of loans originated for Government Sponsored Enterprises (GSEs - Fannie Mae and Freddie Mac) increased by 306 percent from last year's first quarter. There was a 113 percent increase for Commercial Mortgage Backed Securities (CMBS) loans, a 51 percent increase for life insurance company loans, and a one percent decrease in dollar volume for commercial bank portfolio loans.

MORTGAGE DEBT OUTSTANDING Strong first quarter mortgage originations boosted the level of commercial and multifamily mortgage debt outstanding. Commercial/multifamily mortgage debt outstanding increased by $40.4 billion (1.5 percent) in the first quarter of 2015, as all four major investor groups increased their holdings, bringing total debt to $2.68 trillion. Multifamily mortgage debt outstanding rose to $989 billion, an increase of $20.6 billion, or 2.1 percent, from the fourth quarter of 2014. Commercial banks continue to hold the largest share, $985 billion, or 37 percent of the total. CMBS, CDO and other ABS issues are the second largest holders, with $534 billion, or 20 percent of the total. Agency and GSE portfolios and MBS hold $422 billion, or 16 percent of the total, and life insurance companies hold $363 billion, or 14 percent of the total. In the first quarter of 2015, banks and thrifts saw the largest increase in dollar terms in their holdings -- an increase of $18.4 billion, or 1.9 percent. Agency and GSE portfolios and MBS increased their holdings by $10.0 billion, or 2.4 percent, and life insurance companies increased their holdings by $5.2 billion, or 1.4 percent. Private pension funds saw the largest decrease at $728 million, or down 4.0 percent. The $20.6 billion increase in multifamily mortgage debt outstanding between the fourth quarter of 2014 and the first quarter of 2015 represents a 2.1 percent increase. In dollar terms, agency and GSE portfolios and MBS saw the largest increase, $10.0 billion, or 2.4 percent. Commercial banks increased their holdings of multifamily mortgage debt by $8.0 billion, or 2.7 percent. State and local government increased by $3.9 billion, or 4.4 percent. CMBS, CDO and other ABS issues saw the largest decline in their holdings of multifamily mortgage debt, by $2.1 billion, or down 2.8 percent. DELINQUENCIES Commercial and multifamily mortgage performance continues to improve. Increasing property incomes, rising property values and a strong finance market are

10




working together to push delinquency rates lower. Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the first quarter were as follows:

Life company portfolios (60 or more days delinquent): 0.06 percent, a decrease of 0.02 percentage points from the fourth quarter of 2014;

Freddie Mac (60 or more days delinquent): 0.03 percent, a decrease of 0.01 percentage points from the fourth quarter of 2014;

Banks and thrifts (90 or more days delinquent or in non-accrual): 1.03 percent, a decrease of 0.11 percentage points from the fourth quarter of 2014;

CMBS (30 or more days delinquent or in REO): 5.17 percent, a decrease of 0.19 percentage points from the fourth quarter of 2014;

Fannie Mae (60 or more days delinquent): 0.09 percent, an increase of 0.04 percentage points from the fourth quarter of 2014.

11




Economic Commentary Still Optimistic About Growth for 2015 June 2015 The BEA’s second estimate of GDP growth for the first quarter showed a contraction of 0.7 percent, a significant downward revision from the advance estimate of 0.2 percent growth. However, data on retail sales, factory orders, payroll growth, and unemployment claims seem to paint a stronger picture of growth. Even if the US economy did contract in the first quarter, we are not expecting that weakness to persist through the rest of 2015. The first quarter was impacted most significantly by the rapid appreciation of the US dollar, lower exports, as well as trade and inventory disruptions on the West Coast. These are likely temporary hurdles to growth that will dissipate over the course of 2015. While weak retail sales did provide some cause for concern from December through February, the data indicated encouraging increases in both March and May. This was positive sign for overall growth as 60 to 70 percent of GDP consists of consumer spending on goods and services. Additionally, continued strength in the job market will support consumer spending through increased job prospects and upward pressure on wages and compensation. Our forecast is that growth in consumer spending will continue to outpace and drive broader US growth through 2016. Interest rates have been low for some time, mainly on concerns about economic growth abroad and aggressive monetary policy moves by the European Central Bank and the Bank of Japan. However, the 10-year Treasury yield jumped up over the last few weeks in part because German bond yields have improved, due to signs of growth and increasing inflation in Europe. We expect rates to increase through the course of the 2015, with the 10-year Treasury yield reaching around 3 percent by the middle of 2016. Rates are likely to be quite volatile through the remainder of the year given the uncertainty regarding the Fed’s path going forward.

The FOMC is still awaiting “more decisive signs” of an economic recovery, according to the most recent FOMC statement following the committee’s June meeting and Chairwoman Yellen’s press conference remarks. While we still expect a September 2015 lift off in the fed funds rate, Chairwoman Yellen communicated that any rate increases will be gradual in nature, and that the committee remains data dependent and will not pursue a rate increase schedule that is “mechanical” in nature. Our forecast for mortgage originations remains the same as last month. Refinances are expected to be $551 billion in 2015, compared to $484 billion in 2014. Purchase originations are expected to increase to $730 billion in 2015 from $638 billion in 2014. The total is expected to be $1.28 trillion in mortgage originations, compared to $1.12 trillion in 2014. As more data have been released, it appears that the weakness in payrolls that we saw in March was an anomaly. Payroll growth in April and May averaged 250,000 jobs per month, and in the JOLTS data, job openings continue to trend upward, reaching the highest number of openings in the survey’s history. US nonfarm payrolls increased by 280,000 jobs in May and the unemployment rate ticked up to 5.5 percent as the labor force participation increased a little as well. Potentially better and more job opportunities likely brought some workers back into the labor force, which caused the increase in participation. We expect job growth at a pace above 200,000 jobs per month for 2015, and that the unemployment rate will decrease slowly to around 5.2 percent by the end of the year. Similar improvements in 2016 are expected to bring the unemployment rate below 5.0 percent in 2016. The manufacturing sector, as measured by the ISM’s series of diffusion indexes, is still

12




showing growth, but at levels lower than at the same point a year ago. New orders have picked up over the last two months, but the production and employment components remain weak, with the employment index dipping into contractionary territory in April. Similarly, the Federal Reserve’s industrial production index has been on a declining trend since December, primarily driven by a slide in mining production. Capacity utilization has also fallen, declining from a recent high of 79.8 percent in November 2014 to 78.1 percent in May 2015, the lowest level since January 2014. Shipments of nondefense capital goods excluding aircraft, which are a proxy of current business fixed investment in the GDP calculations, increased in the Mach and April, a sign that businesses have resumed some capital investment after a slow start to the year. However, new orders for these core capital goods remain somewhat muted, a sign that businesses remain cautious about their outlook for the coming months. Overall inflation continues to be held down by low fuel prices. Although fuel prices began to firm slightly over the past two months, they are still 25 percent lower than the same month a year ago. Core inflation, which excludes food and energy, increased 1.7 percent from a year ago in May, signaling that prices are not quite as weak as the headline number suggests. Growth in the shelter component has leveled off a little in recent months, but is still high in terms of its year over year growth. We expect overall prices to stabilize over the next year and edge back up to the 2 percent mark during 2016. Our projection for overall US economic growth is 1.8 percent in 2015, mostly held down by the weak first quarter, and 2.5 percent in 2016, which will be driven mainly by strong consumer spending as wages increase. Housing will also likely provide a cushion for growth if we see new household formation, but business fixed investment is likely to remain fairly restrained. Net exports will remain a drag to growth as the US dollar maintains its current strength and we see more divergence from other currencies, especially those of European countries.

Housing starts in May dipped after a strong showing in April, however, permits picked up for both single and multifamily units, another sign that more potential growth is around the corner. At 680,000 units (SAAR) in May, single family housing starts continue to run at a pace well below the historical average of just over 1 million units. Multifamily starts dropped to a pace of 356,000 units, which is also below the historical average of 417,000 units. Single family starts and housing in general should begin to pick up again as economic growth continues at its current pace and as wage pressures increase, leading to increased household formation. Household formation, especially owner households, is one of the most significant drivers of purchase activity in the housing market. We saw an increase in total households toward the end of 2014 and expect to see increasing growth in owner households during the balance of 2015 and into 2016. In the mortgage market, recent rate volatility has produced similar swings in mortgage application activity. Following a period of low rates earlier in 2015, refinance applications have predominantly fallen since rates have started to increase in recent months. Even though mortgages rates, at 4.22 percent in the most recent week’s survey, are still low by historical standards, they have increased by almost 40 basis points in the last two months. This has resulted in a 30 percent drop in refinance applications over the same period of time. With fewer borrowers who are “in the money” with an incentive to refinance, and a portion of borrowers still repairing credit and home equity, we expect refinance activity will continue to decline. Purchase application growth has not been spectacular, but continues to increase on a year over year basis, increasing at an average rate of 14 percent compared to the same week last year for the past two months. Importantly, purchase applications for loan sizes between $150,000 and $417,000 (the conforming loan limit) have increased sharply relative to last year. We still see contraction in the bottom tier of purchase loan amounts (less than $150,000), however, which historically accounts for around 35 percent of all purchase activity.

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We estimate a total of $1.28 trillion in mortgage originations for 2015, compared to $1.12 trillion in 2014. Purchase originations will drive the increase, increasing to $730 billion in 2015 from $638 billion in 2014. Refinances are expected to be to $551 billion in 2015. For 2016, we expect $791 billion in purchase originations. However, rates will likely continue to rise and cause refinances to decline to $379 billion for a total of $1.17 trillion in origination volume in 2016. The chart below shows historical mortgage originations estimates as well as our forecast, and also reveals 2014 as the first purchase dominated market since the mid-2000s, with that trend likely to continue through 2015 and 2016.

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15




TREASURY YIELDS AND BANK RATES

Federal Reserve Statistical Release H-15

Treasury Yield Curve

Ten Year Treasury and Ten Year Swaps

Source: Federal Reserve Board H-15 ReportYields on actively traded issues adjusted to constant maturities.

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

10-Year7-Year5-Year3-Year1-Year3-Month

May-15 Dec-14 Dec-13 Dec-12 Dec-11 Dec-10

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jul-

00

Jan-

01

Jul-

01

Jan-

02

Jul-

02

Jan-

03

Jul-

03

Jan-

04

Jul-

04

Jan-

05

Jul-

05

Jan-

06

Jul-

06

Jan-

07

Jul-

07

Jan-

08

Jul-

08

Jan-

09

Jul-

09

Jan-

10Ju

l-10

Jan-

11Ju

l-11

Jan-

12Ju

l-12

Jan-

13Ju

l-13

Jan-

14Ju

l-14

Jan-

15

10-Year Treasury 10 Year Swaps

16




TREASURY YIELDS AND BANK RATES

Federal Reserve Statistical Release H-15

3-Month 1-Year 3-Year 5-Year 7-Year 10-Year 10-YearTreasury Treasury Treasury Treasury Treasury Treasury Swap

Dec-00 5.94 5.60 5.26 5.17 5.28 5.24 6.27 Dec-01 1.72 2.22 3.62 4.39 4.86 5.09 5.82 Dec-02 1.21 1.45 2.23 3.03 3.63 4.03 4.48 Dec-03 0.91 1.31 2.44 3.27 3.79 4.27 4.65 Dec-04 2.22 2.67 3.21 3.60 3.93 4.23 4.63 Dec-05 3.97 4.35 4.39 4.39 4.41 4.47 5.01 Dec-06 4.97 4.94 4.58 4.53 4.54 4.56 5.03 Dec-07 3.07 3.26 3.13 3.49 3.74 4.10 4.76 Dec-08 0.03 0.49 1.07 1.52 1.89 2.42 2.70 Dec-09 0.05 0.37 1.38 2.34 3.07 3.59 3.71 Dec-10 0.14 0.29 0.99 1.93 2.66 3.29 3.39 Dec-11 0.01 0.12 0.39 0.89 1.43 1.98 2.13 Dec-12 0.07 0.16 0.35 0.70 1.13 1.72 1.75 Dec-13 0.07 0.13 0.69 1.58 2.29 2.90 2.95 Dec-14 0.03 0.21 1.06 1.64 1.98 2.21 2.33

May-14 0.03 0.10 0.83 1.59 2.12 2.56 2.65 Jun-14 0.04 0.10 0.90 1.68 2.19 2.60 2.69 Jul-14 0.03 0.11 0.97 1.70 2.17 2.54 2.64 Aug-14 0.03 0.11 0.93 1.63 2.08 2.42 2.56 Sep-14 0.02 0.11 1.05 1.77 2.22 2.53 2.66 Oct-14 0.02 0.10 0.88 1.55 1.98 2.30 2.44 Nov-14 0.02 0.13 0.96 1.62 2.03 2.33 2.45 Dec-14 0.03 0.21 1.06 1.64 1.98 2.21 2.33 Jan-15 0.03 0.20 0.90 1.37 1.67 1.88 2.00 Feb-15 0.02 0.22 0.99 1.47 1.79 1.98 2.10 Mar-15 0.03 0.25 1.02 1.52 1.84 2.04 2.15 Apr-15 0.02 0.23 0.87 1.35 1.69 1.94 2.02 May-15 0.02 0.24 0.98 1.54 1.93 2.20 2.26

(0.01) 0.14 0.15 (0.05) (0.19) (0.36) (0.39)

Source: Federal Reserve Board H-15 ReportYields on actively traded issues adjusted to constant maturities.

Change in Rate May-14 to May-15

17




EMPLOYEES ON NONFARM PAYROLLS

Number of Employees on Nonfarm PayrollsSeasonally Adjusted, Thousands of Employees

Year-over-year Change

Month-over-month Change


(8,000)

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

1990 1991

1992

1993

1994

1995

1996

1997

1998

1999

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

Total Non-Farm Service Producing Goods Producing Government

(1,000)

(800)

(600)

(400)

(200)

-

200

400

600

1990 1991

1992

1993

1994

1995

1996

1997

1998

1999

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

Service Producing Goods Producing Government

18




EMPLOYEES ON NONFARM PAYROLLS

Number of Employees on Nonfarm PayrollsSeasonally Adjusted, Thousands of Employees

Private PrivateService Goods Government Total

Producing Producing Nonfarm

Dec 2007 93,998 21,976 22,376 138,350 Dec 2008 91,895 20,322 22,556 134,773 Dec 2009 89,411 17,792 22,482 129,685 Dec 2010 90,689 17,796 22,266 130,751 Dec 2011 92,638 18,243 21,950 132,831 Dec 2012 94,659 18,537 21,892 135,088 Dec 2013 96,754 18,894 21,828 137,476 Dec 2014 99,201 19,489 21,902 140,592

May 2014 97,624 19,156 21,841 138,621 Jun 2014 97,862 19,190 21,855 138,907 Jul 2014 98,052 19,243 21,861 139,156 Aug 2014 98,227 19,277 21,865 139,369 Sep 2014 98,424 19,315 21,880 139,619 Oct 2014 98,608 19,349 21,883 139,840 Nov 2014 98,946 19,425 21,892 140,263 Dec 2014 99,201 19,489 21,902 140,592 Jan 2015 99,352 19,540 21,901 140,793 Feb 2015 99,593 19,560 21,906 141,059 Mar 2015 99,730 19,540 21,908 141,178 Apr 2015 99,915 19,561 21,923 141,399 May 2015 100,171 19,567 21,941 141,679

Percent change May 2014 to May 2015 2.6% 2.1% 0.5% 2.2%

Change

Year-over-yearDec 2007 1,280 (429) 288 1,139 Dec 2008 (2,103) (1,654) 180 (3,577) Dec 2009 (2,484) (2,530) (74) (5,088) Dec 2010 1,278 4 (216) 1,066 Dec 2011 1,949 447 (316) 2,080 Dec 2012 2,021 294 (58) 2,257 Dec 2013 2,095 357 (64) 2,388 Dec 2014 2,447 595 74 3,116

Month-over-monthMay 2014 213 25 (2) 236 Jun 2014 238 34 14 286 Jul 2014 190 53 6 249 Aug 2014 175 34 4 213 Sep 2014 197 38 15 250 Oct 2014 184 34 3 221 Nov 2014 338 76 9 423 Dec 2014 255 64 10 329 Jan 2015 151 51 (1) 201 Feb 2015 241 20 5 266 Mar 2015 137 (20) 2 119 Apr 2015 185 21 15 221 May 2015 256 6 18 280


19




MONTHLY RETAIL SALES

Seasonally AdjustedBy Kind of Business, $millions


05,000

10,00015,000

20,00025,00030,00035,000

200

6 -

Jan

200

7 -

Jan

200

8 -

Jan

200

9 -

Jan

2010

- J

an

2011

- J

an

2012

- J

an

2013

- J

an

2014

- J

an

2015

- J

an

Building Materials

0

10,000

20,000

30,000

40,000

50,000

60,000

200

6 -

Jan

200

7 -

Jan

200

8 -

Jan

200

9 -

Jan

2010

- J

an

2011

- J

an

2012

- J

an

2013

- J

an

2014

- J

an

2015

- J

an

General Merchandise

0

5,000

10,000

15,000

20,000

25,000

200

6 -

Jan

200

7 -

Jan

200

8 -

Jan

200

9 -

Jan

2010

- J

an

2011

- J

an

2012

- J

an

2013

- J

an

2014

- J

an

2015

- J

an

Clothing & Accessories

0

10,000

20,000

30,000

40,000

50,000

60,000

200

6 -

Jan

200

7 -

Jan

200

8 -

Jan

200

9 -

Jan

2010

- J

an

2011

- J

an

2012

- J

an

2013

- J

an

2014

- J

an

2015

- J

an

Food and Beverage Stores

05,000

10,00015,000

20,00025,00030,000

200

6 -

Jan

200

7 -

Jan

200

8 -

Jan

200

9 -

Jan

2010

- J

an

2011

- J

an

2012

- J

an

2013

- J

an

2014

- J

an

2015

- J

an

Health and Personal Care Stores

050,000

100,000150,000

200,000250,000300,000350,000

200

6 -

Jan

200

7 -

Jan

200

8 -

Jan

200

9 -

Jan

2010

- J

an

2011

- J

an

2012

- J

an

2013

- J

an

2014

- J

an

2015

- J

an

Retail Sales, Excluding Motor Vehicles andParts Dealers

20




MONTHLY RETAIL SALES

Seasonally AdjustedBy Kind of Business, $millions

Total excludes motor vehicle and parts dealers

General Food & Building Health & Clothing & Total % ChangeMerchandise Beverage Materials Personal Accessories

Year-Over-Year

2003 468,894 474,690 263,079 192,530 178,417 2,420,500 4.73%2004 495,736 488,988 293,754 198,687 189,393 2,596,619 7.28%2005 528,071 508,316 320,775 210,250 200,190 2,799,433 7.81%2006 554,462 525,785 335,255 223,699 212,978 2,974,728 6.26%2007 579,140 548,329 320,821 237,188 221,601 3,086,842 3.77%2008 595,465 568,701 300,701 246,138 216,909 3,146,886 1.95%2009 589,900 569,382 261,489 253,395 204,506 2,943,060 -6.48%2010 604,482 581,907 260,066 261,157 212,655 3,076,741 4.54%2011 625,178 610,111 269,674 272,898 227,310 3,290,060 6.93%2012 641,978 629,112 282,398 275,304 238,053 3,413,683 3.76%2013 653,751 644,003 301,915 283,700 244,642 3,506,989 2.73%2014 667,619 663,059 318,295 301,958 248,682 3,594,794 2.50%

Month-over-Month

2014 - Apr 55,907 54,856 26,498 24,757 20,824 299,820 0.77%2014 - May 55,799 54,779 26,538 25,047 20,694 300,321 0.17%2014 - Jun 55,778 55,381 26,843 25,380 20,675 301,598 0.43%2014 - Jul 55,890 55,297 26,691 25,357 20,835 301,518 -0.03%2014 - Aug 56,127 55,505 26,859 25,515 20,968 302,068 0.18%2014 - Sep 55,868 55,714 26,763 25,589 20,657 301,086 -0.33%2014 - Oct 55,875 55,848 26,897 25,587 20,792 301,423 0.11%2014 - Nov 56,135 56,030 27,292 25,700 21,214 301,989 0.19%2014 - Dec 55,843 56,322 27,104 25,900 20,980 298,276 -1.23%2015 - Jan 56,055 56,228 27,444 25,813 20,776 294,433 -1.29%2015 - Feb 54,709 56,217 26,902 25,805 20,841 293,915 -0.18%2015 - Mar 55,480 56,078 27,513 25,870 21,034 295,791 0.64%2015 - Apr 55,180 56,003 27,595 26,069 21,066 295,749 -0.01%

Percent change 2014 - Apr to 2015 - Apr -1.3% 2.1% 4.1% 5.3% 1.2% -1.4%


Selected Businesses

21




Change in Owner- and Renter-OccupiedHousing Units

Thousands of Units


Quarter-over-quarter Change

Source: MBA, U.S. Census Bureau and Haver Analytics

(1,500)

(1,000)

(500)

-

500

1,000

1,500

2,000

2,500

1990 1995 2000 2005 2010 2015

Change in Renter-occupied Units Change in Owner-occupied Units

(1,000)

(500)

-

500

1,000

1,500

1990 1995 2000 2005 2010 2015

Change in Renter-occupied Units Change in Owner-occupied Units

22




Owner- and Renter-Occupied Housing Units

Thousands of Units at End-of-period

Total Owner Renter Total Owner Renter

1991 92,691 59,491 33,200 963 705 258 1992 93,980 60,552 33,428 1,289 1,061 228 1993 95,717 61,415 34,302 1,737 863 874 1994 96,797 62,152 34,645 1,080 737 343 1995 97,545 63,520 34,025 748 1,368 (620) 1996 98,421 64,416 34,005 876 896 (20) 1997 99,743 65,531 34,212 1,322 1,115 207 1998 101,115 67,158 33,957 1,372 1,626 (254) 1999 102,330 68,477 33,853 1,215 1,319 (104) 2000 103,646 70,010 33,635 1,315 1,533 (218) 2001 104,698 71,230 33,468 1,053 1,220 (167) 2002 105,759 72,187 33,572 1,061 957 104 2003 106,505 73,091 33,414 746 904 (158) 2004 108,735 75,233 33,502 2,230 2,142 88 2005 110,281 76,119 34,162 1,546 886 660 2006 111,096 76,544 34,552 815 425 390 2007 111,724 75,720 36,003 627 (824) 1,451 2008 111,823 75,465 36,358 100 (255) 355 2009 112,485 75,537 36,948 662 72 590 2010 113,331 75,342 37,990 847 (195) 1,042 2011 113,801 75,126 38,675 469 (216) 685 2012 114,636 74,950 39,686 835 (176) 1,011 2013 114,992 74,960 40,033 357 10 347 2014 116,647 74,606 42,041 1,654 (354) 2,008

2012 - Q1 113,803 74,392 39,411 2 (734) 736 2012 - Q2 113,845 74,600 39,246 42 208 (165) 2012 - Q3 114,298 74,815 39,480 453 215 234 2012 - Q4 114,636 74,950 39,686 338 135 206 2013 - Q1 114,248 74,255 39,992 (388) (695) 306 2013 - Q2 114,669 74,534 40,135 421 279 143 2013 - Q3 114,769 74,897 39,872 100 363 (263) 2013 - Q4 114,992 74,960 40,033 223 63 161 2014 - Q1 114,762 74,404 40,357 (230) (556) 324 2014 - Q2 115,127 74,458 40,669 365 54 312 2014 - Q3 115,310 74,240 41,070 183 (218) 401 2014 - Q4 116,647 74,606 42,041 1,337 366 971 2015 - Q1 116,240 74,018 42,222 (407) (588) 181

Source: MBA, U.S. Census Bureau and Haver Analytics

Year-over-year ChangeNumber of Occupied Units

Quarter-over-quarter Change

23




2. Commercial/Multifamily Finance Environment Extract of Commercial Real Estate Comments from the Federal Reserve Board’s Beige Book June 3, 2015 Prepared at the Federal Reserve Bank of Dallas based on information collected on or before May 22, 2015. This document summarizes comments received from businesses and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials. NATIONAL SUMMARY Apartment demand was strong in the Dallas District, and held steady in the Richmond District. Tight inventories and strong sales continued to push up prices, except for at the high end of the Manhattan market, according to New York's report. Condo sales rose in the Richmond District, but declined in the Boston District. Rents and prices increased in districts that commented on them, and one San Francisco District contact said that high apartment prices have led young buyers to consider single-family homes. Strength in multifamily construction was reported in the Cleveland, Atlanta, and San Francisco Districts, and the Richmond District continued to experience steady apartment building activity. Commercial real estate leasing and construction activity improved in most districts, and outlooks were optimistic. The New York District reported a strengthening industrial market and steady office and retail leasing demand. In the Boston District, demand for office space held steady at a decent to solid pace, except for in Hartford where demand was slow. The Dallas District continued to see active industrial, retail, and office leasing activity, with the exception of the Houston office market. Both commercial real estate development and leasing activity increased across the San Francisco District, mostly fueled by growth in the technology industry. Contacts in the St. Louis District noted a tight office market for Class A space, and continued commercial and industrial

construction. Commercial building increased in the Chicago District driven by demand for industrial and office space, and new hotel and office development in downtown Chicago was compelling retailers to relocate. The Cleveland and Atlanta Districts noted increased construction backlogs, and shortages of skilled labor remained a constraint on construction activity in some districts, such as Boston, Cleveland, and San Francisco. FIRST DISTRICT—BOSTON Reports from commercial real estate contacts in the First District are mixed. A Hartford contact had expected leasing activity to improve with the arrival of spring, but he reports that the improvement failed to materialize and leasing activity remains slow in each of the office, retail, and industrial sectors. However, Greater Hartford's investment sales market is experiencing robust demand and steady transaction volume. In Greater Boston, office leasing activity is holding steady at a solid pace and fundamentals are roughly unchanged. Also in Greater Boston, construction activity is steady at a brisk pace and the outlook calls for increased construction activity in the health care sector. Boston's office construction activity consists mostly of build-to-suit projects rather than speculative structures. In Portland, the vacancy rate is declining in the class A office market amid brisk leasing activity, and rents are expected to rise (if slowly) in each of Portland's office, retail, and industrial sectors in the coming year. In Providence, office leasing volume is described as decent and business sentiment is improving. According to one contact, scarcities of skilled construction labor relative to demand for such labor in the region--and associated wage increases--are starting to hinder additional construction activity.

24




SECOND DISTRICT—NEW YORK Commercial real estate markets across the District have been mixed, with industrial markets continuing to strengthen but office and retail markets generally steady. Office availability rates have edged down in upstate New York and northern New Jersey, though they remain quite elevated in the latter. Rates remain steady across Manhattan but have risen to multi-year highs in Westchester and Fairfield counties. The market for retail space has also been generally stable, with rents rising modestly in most areas. Industrial markets, however, have generally strengthened: industrial vacancy rates have declined across upstate New York, northern New Jersey, and New York City and are at or near multi-year lows across most of the District. Industrial rents have been rising steadily across most of the District. While industrial construction has been subdued, office construction has picked up across northern New Jersey, upstate New York and particularly in Manhattan. THIRD DISTRICT—PHILADELPHIA Nonresidential real estate contacts reported that construction and leasing activity continued at a modest pace. New construction continued to be driven by projects in downtown Allentown and Philadelphia that include office, retail, and residential components. Throughout the Third District, industrial/warehouse projects and suburban office renovations remain active and in demand. Contacts attributed a little continued rent pressure on office space to some emerging employment growth. Demand and rent pressures are greatest in downtown Philadelphia and have been spilling over into suburban areas, especially for Class A or better office space. Contacts remained optimistic for the ongoing growth of both new construction and leasing activity in 2015. FOURTH DISTRICT—CLEVELAND Nonresidential contractors reported a strong boost in activity over the period, with a bias toward private work. On balance, the number of inquiries has increased. General contractors reported that their margins are increasing. Labor capacity was frequently mentioned as a factor that will restrain

growth going forward. Backlogs were characterized as strong or strengthening. Demand is greatest for office space, industrial structures, multifamily housing, and university construction. Financing is more readily available to successful developers than it has been in the recent past. FIFTH DISTRICT—RICHMOND Commercial real estate market activity increased modestly since the previous report. Several Realtors reported that rental rates firmed up since our previous report. Vacancy rates decreased modestly in Washington D.C., Richmond, Baltimore, Charlotte, Hampton Roads, and Charleston, South Carolina. However, vacancy rates were mostly unchanged in Charleston, West Virginia and in Virginia Beach. Sales of retail space improved in Virginia Beach, weakened in Baltimore, and were unchanged in Washington D.C., with most of the activity in smaller spaces. A broker in Richmond reported that sales activity increased. Additionally, a contact in Charlotte stated that sales and sale prices rose since our previous report. A commercial real estate contact in Baltimore said that the market there has picked up; he noted that sales of office buildings increased downtown and that the medical office sector remained strong. A broker in Hampton Roads reported that condo construction and commercial sales have increased. SIXTH DISTRICT—ATLANTA District commercial real estate brokers indicated that demand continued to improve, but they cautioned that the rate of improvement varied by metropolitan area, submarket, and property type. Commercial contractors indicated that nonresidential construction activity increased from the year-ago level across the District and noted the strength in apartment construction persisted. On balance, most contacts reported a backlog that was greater than their year earlier level. The outlook among District commercial real estate contacts remained positive. SEVENTH DISTRICT—CHICAGO Nonresidential construction activity was somewhat higher, driven by demand for

25




industrial buildings and offices. Commercial real estate activity grew at a strong pace, particularly in urban centers and select suburbs. Contacts reported that new hotel and office developments in downtown Chicago were forcing retailers to relocate, and that in the best locations retail rents and occupancy rates were at all-time highs. EIGHTH DISTRICT—ST. LOUIS Commercial and industrial real estate market conditions were positive throughout most of the District. Contacts across the District noted tight office market conditions in class A space. Contacts in Louisville noted that many firms have outgrown their current office space and expect rent growth to accelerate in the second half of 2015. Commercial and industrial construction activity continues to be positive throughout most of the District. Contacts across the District reported an increase in speculative industrial space. A survey of District banks showed moderate improvement in overall lending activity over the past three months. For commercial and industrial loans, credit standards eased somewhat, creditworthiness of applicants improved, demand was slightly stronger, and delinquencies were lower. NINTH DISTRICT—MINNEAPOLIS Activity in commercial real estate markets was steady since the previous report. A commercial real estate analytics firm noted that first-quarter 2015 industrial and retail vacancy rates in Minneapolis-St. Paul dropped slightly from the end of 2014. Residential real estate activity increased at a brisk pace from a year ago. Compared to a year ago, western Wisconsin home sales increased 25 percent in April, and the median sales price rose 12 percent. Also, Minnesota home sales were up 20 percent in April, the inventory of homes for sale was flat, and the median sales price rose 12 percent. In the Sioux Falls area, April home sales were up 4 percent, inventory decreased 14 percent, and the median sales price increased 1 percent relative to a year earlier. TENTH DISTRICT—KANSAS CITY Commercial real estate activity continued to increase modestly in April and May as vacancy rates decreased and absorption

rates, completions, construction underway, sales and prices increased. The commercial real estate market was expected to strengthen at a modest pace over the coming months. ELEVENTH DISTRICT—DALLAS Commercial real estate activity was generally strong, and outlooks were cautiously optimistic. Demand for office space was fairly solid, except for in Houston where leasing activity slowed and contacts noted an uptick in the level of sublease space. A few energy firms in Fort Worth are also seeking to sublease office space. Industrial and retail leasing and construction remained active, with industrial demand in Dallas-Fort Worth shifting from large to small and mid-sized tenants. TWELFTH DISTRICT—SAN FRANCISCO Commercial real estate construction and leasing activity grew overall, with growth concentrated in a few areas with vibrant technology sectors. Shortages of skilled labor remained a constraint on construction activity in some fast-growth areas. Expanded construction activity spurred additional equipment purchases by construction companies, including some aimed at enhancing productivity.

26




NET INVENTORY CHANGE/NET ABSORPTIONCOMMERCIAL/MULTIFAMILY PROPERTIES

Net Absorption (Thousands of Square Feet)

Net Inventory Change (Thousands of Square Feet)

Source: REIS

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

200

2Q1

200

3Q1

200

4Q1

200

5Q1

200

6Q1

200

7Q1

200

8Q1

200

9Q1

2010

Q1

2011

Q1

2012

Q1

2013

Q1

2014

Q1

2015

Q1

Office Retail Apartment

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

200

2Q1

200

3Q1

200

4Q1

200

5Q1

200

6Q1

200

7Q1

200

8Q1

200

9Q1

2010

Q1

2011

Q1

2012

Q1

2013

Q1

2014

Q1

2015

Q1


27




COMMERCIAL/MULTIFAMILY PROPERTIESNET INVENTORY CHANGE LESS NET ABSORPTION

THOUSANDS OF SQUARE FEET

CalendarYear Q1 Q2 Q3 Q4 Year YTD Q1

APARTMENT2004 27,224 (24,225) (20,472) 3,337 (14,136) 27,224 2005 (6,228) (20,131) (57,423) (12,080) (95,862) (6,228) 2006 11,123 (23,851) (13,943) 38,538 11,867 11,123 2007 19,335 (19,332) (14,686) 9,830 (4,853) 19,335 2008 24,525 15,695 9,298 50,108 99,626 24,525 2009 64,891 35,244 17,487 20,832 138,454 64,891 2010 1,982 (16,777) (71,264) (44,687) (130,746) 1,982 2011 (38,062) (30,859) (26,128) (37,629) (132,678) (38,062) 2012 (25,960) (15,738) (5,272) (13,767) (60,737) (25,960) 2013 (20,756) (5,392) (1,534) 731 (26,951) (20,756) 2014 (11,965) 3,089 11,565 1,207 3,896 (11,965) 2015 (7,815) (7,815)

OFFICE2004 (201) (1,996) (5,895) (12,298) (20,390) (201) 2005 (11,483) (21,652) (15,582) (16,844) (65,561) (11,483) 2006 (19,558) (13,917) (13,385) (5,483) (52,343) (19,558) 2007 (10,008) (11,669) (9,309) 5,429 (25,557) (10,008) 2008 11,244 13,636 24,037 31,506 80,423 11,244 2009 30,508 32,255 24,983 17,459 105,205 30,508 2010 14,439 4,982 7,301 (316) 26,406 14,439 2011 (1,125) (1,450) (2,391) (1,886) (6,852) (1,125) 2012 (3,803) (1,579) (1,381) (3,344) (10,107) (3,803) 2013 (2,477) (157) (1,368) 40 (3,962) (2,477) 2014 (1,947) 982 (2,190) (3,617) (6,773) (1,947) 2015 (2,737) (2,737)

RETAIL2004 1,007 (1,368) (1,383) (205) (1,949) 1,007 2005 102 (3,892) 1,390 1,448 (952) 102 2006 2,549 43 2,660 2,267 7,519 2,549 2007 1,486 2,644 1,564 3,825 9,519 1,486 2008 5,331 9,094 6,474 10,395 31,294 5,331 2009 11,788 11,282 6,048 5,590 34,708 11,788 2010 3,543 2,585 1,234 386 7,748 3,543 2011 (397) 1,646 1,146 (1,132) 1,263 (397) 2012 (1,430) (1,150) (548) (1,293) (4,421) (1,430) 2013 (1,669) (1,655) (797) (1,964) (6,085) (1,669) 2014 182 (824) (1,037) (1,914) (3,593) 182 2015 (1,554) (1,554)

Source: REIS

28




AVERAGE RENTS AND VACANCY RATES ATCOMMERCIAL/MULTIFAMILY PROPERTIES

Average Rents

Average Vacancy Rates percent

Source: REIS

0

2

4

6

8

10

12

14

16

18

20

200

2Q1

200

2Q3

200

3Q1

200

3Q3

200

4Q1

200

4Q3

200

5Q1

200

5Q3

200

6Q1

200

6Q3

200

7Q1

200

7Q3

200

8Q1

200

8Q3

200

9Q1

200

9Q3

2010

Q1

2010

Q3

2011

Q1

2011

Q3

2012

Q1

2012

Q3

2013

Q1

2013

Q3

2014

Q1

2014

Q3

2015

Q1


0

200

400

600

800

1000

1200

1400

$0

$5

$10

$15

$20

$25

$30

$35

200

2Q1

200

2Q3

200

3Q1

200

3Q3

200

4Q1

200

4Q3

200

5Q1

200

5Q3

200

6Q1

200

6Q3

200

7Q1

200

7Q3

200

8Q1

200

8Q3

200

9Q1

200

9Q3

2010

Q1

2010

Q3

2011

Q1

2011

Q3

2012

Q1

2012

Q3

2013

Q1

2013

Q3

2014

Q1

2014

Q3

2015

Q1

Office Retail Apartment (Right Scale)

$/Sq Ft $/Month

29




AVERAGE RENTS AND VACANCY RATES AT COMMERCIAL/MULTIFAMILY PROPERTIES

Year Q1 Q2 Q3 Q4

Q1 Year-over-

year % change Q1 Q2 Q3 Q4

Q1 Year-over-year

changeAPARTMENT (per month)

2005 925$ 930$ 938$ 944$ 2.3% 6.6 6.4 5.8 5.7 -0.62006 952$ 962$ 975$ 982$ 2.9% 5.9 5.6 5.5 5.8 -0.72007 991$ 1,002$ 1,015$ 1,026$ 4.1% 6.0 5.8 5.7 5.7 0.12008 1,035$ 1,046$ 1,052$ 1,050$ 4.4% 6.0 6.1 6.2 6.7 0.02009 1,045$ 1,039$ 1,033$ 1,026$ 1.0% 7.4 7.7 7.9 8.0 1.42010 1,028$ 1,033$ 1,038$ 1,043$ -1.6% 8.0 7.8 7.1 6.6 0.62011 1,048$ 1,054$ 1,060$ 1,065$ 1.9% 6.2 5.9 5.6 5.3 -1.82012 1,071$ 1,082$ 1,092$ 1,098$ 2.2% 5.0 4.8 4.8 4.6 -1.22013 1,104$ 1,112$ 1,123$ 1,133$ 3.1% 4.4 4.3 4.3 4.3 -0.62014 1,141$ 1,153$ 1,166$ 1,173$ 3.4% 4.1 4.2 4.2 4.2 -0.32015 1,179$ 3.3% 4.2 0.1

OFFICE 2005 23.80$ 23.95$ 24.11$ 24.30$ 0.2% 16.1 15.5 15.1 14.7 -0.92006 24.64$ 25.02$ 25.47$ 26.00$ 3.5% 14.2 13.9 13.5 13.4 -1.92007 26.65$ 27.39$ 27.99$ 28.50$ 8.2% 13.1 12.8 12.5 12.6 -1.12008 28.98$ 29.24$ 29.37$ 29.18$ 8.7% 12.9 13.2 13.8 14.5 -0.22009 28.78$ 28.39$ 28.11$ 27.79$ -0.7% 15.2 16.0 16.6 17.0 2.32010 27.58$ 27.54$ 27.50$ 27.53$ -4.2% 17.3 17.5 17.6 17.6 2.12011 27.66$ 27.73$ 27.85$ 27.97$ 0.3% 17.6 17.5 17.5 17.4 0.32012 28.10$ 28.18$ 28.25$ 28.47$ 1.6% 17.3 17.3 17.2 17.1 -0.32013 28.66$ 28.78$ 28.88$ 29.08$ 2.0% 17.1 17.0 17.0 16.9 -0.22014 29.28$ 29.49$ 29.62$ 29.94$ 2.2% 16.9 16.9 16.8 16.7 -0.22015 30.21$ 3.2% 16.6 -0.3

RETAIL2005 17.74$ 17.88$ 18.06$ 18.22$ 3.0% 7.0 6.7 6.8 6.8 -0.22006 18.35$ 18.50$ 18.73$ 18.92$ 3.4% 6.9 6.9 7.0 7.1 -0.12007 19.08$ 19.23$ 19.33$ 19.46$ 4.0% 7.2 7.3 7.3 7.5 0.32008 19.54$ 19.60$ 19.59$ 19.52$ 2.4% 7.7 8.1 8.4 8.9 0.52009 19.40$ 19.27$ 19.21$ 19.13$ -0.7% 9.5 10.0 10.3 10.6 1.82010 19.06$ 19.01$ 19.01$ 18.99$ -1.8% 10.8 10.9 10.9 11.0 1.32011 18.97$ 18.97$ 18.97$ 18.98$ -0.5% 10.9 11.0 11.1 11.0 0.12012 19.00$ 19.03$ 19.06$ 19.08$ 0.2% 10.9 10.8 10.8 10.7 0.02013 19.14$ 19.19$ 19.26$ 19.34$ 0.7% 10.6 10.5 10.5 10.4 -0.32014 19.42$ 19.51$ 19.59$ 19.69$ 1.5% 10.4 10.3 10.3 10.2 -0.22015 19.79$ 1.9% 10.1 -0.3

Source: REIS

(per sq. ft)

Average Asking Rents Average Vacancy Rates (percent)

(per sq. ft)

30




MULTIFAMILY BUILDING PERMITS, STARTS AND COMPLETIONS

Thousands of Units Permitted, Started and Completedin Structures with 5 or More Units, Seasonally Adjusted Annual Rate

1968 to present

1996 to present


0

200

400

600

800

1000

1200

1400

1968

1969 1971

1973

1974

1976

1978

1979

1981

1983

1984

1986

1988

1989

1991

1993

1994

1996

1998

1999

200

1

200

3

200

4

200

6

200

8

200

9

2011

2013

2014

Completions 5+ Permits 5+ Starts 5+ Median Starts 1997 - 2007 (300.5)

0

100

200

300

400

500

600

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Completions 5+ Permits 5+ Starts 5+ Median Starts 1997 - 2007 (300.5)

31




MULTIFAMILY BUILDING PERMITS, STARTS AND COMPLETIONS

Number of Units Permitted, Started and Completed in Structures with 5 or More Units, Seasonally Adjusted Annual Rate

Permits Starts Completions Permits Starts Completions

2000 329 299 305 -6.2% -2.4% 1.8%2001 335 293 281 1.8% -2.1% -7.8%2002 341 308 288 1.8% 5.2% 2.6%2003 346 315 261 1.3% 2.4% -9.5%2004 366 303 287 5.9% -3.9% 10.0%2005 389 311 258 6.3% 2.8% -10.1%2006 384 293 284 -1.3% -6.0% 10.2%2007 359 277 253 -6.5% -5.3% -11.0%2008 295 266 277 -17.7% -4.1% 9.6%2009 121 97 260 -59.0% -63.4% -6.3%2010 135 104 147 11.7% 7.2% -43.6%2011 184 167 130 36.0% 60.4% -11.3%2012 285 234 158 54.9% 39.8% 21.3%2013 341 294 186 19.6% 25.6% 18.1%2014 381 342 256 11.6% 16.3% 37.3%

May 2014 362 340 264 -14.8% -13.0% 17.3%Jun 2014 347 307 207 -4.1% -9.7% -21.6%Jul 2014 371 422 224 6.9% 37.5% 8.2%Aug 2014 362 306 282 -2.4% -27.5% 25.9%Sep 2014 374 353 314 3.3% 15.4% 11.3%Oct 2014 436 357 299 16.6% 1.1% -4.8%Nov 2014 388 328 244 -11.0% -8.1% -18.4%Dec 2014 368 336 268 -5.2% 2.4% 9.8%Jan 2015 375 368 292 1.9% 9.5% 9.0%Feb 2015 444 292 245 18.4% -20.7% -16.1%Mar 2015 370 311 199 -16.7% 6.5% -18.8%Apr 2015 442 428 306 19.5% 37.6% 53.8%May 2015 557 349 392 26.0% -18.5% 28.1%

53.9% 2.6% 48.5%


Percent change May 2014 to May 2015

Percent ChangeThousands of Units

Year-over-year

Month-over-month

32




NEW PRIVATELY OWNED HOUSING UNITS STARTED, BY PURPOSEThousands of Units

Quarter TOTAL TotalFor

RentFor Sale

Percent for Rent

2008Q1 231 162 69 52 17 75%2008Q2 283 194 89 67 22 75%2008Q3 237 163 74 54 20 73%2008Q4 154 103 51 43 8 84%2009Q1 114 78 36 31 5 86%2009Q2 154 124 30 25 5 83%2009Q3 162 138 24 19 5 79%2009Q4 124 105 19 16 3 84%2010Q1 134 114 20 16 4 80%2010Q2 172 142 30 26 4 87%2010Q3 161 119 42 36 6 86%2010Q4 120 96 24 21 3 88%2011Q1 126 90 36 30 6 83%2011Q2 164 123 41 38 3 93%2011Q3 171 118 53 48 5 91%2011Q4 149 100 49 44 5 90%2012Q1 154 105 49 45 4 92%2012Q2 209 151 58 53 5 91%2012Q3 214 150 64 57 7 89%2012Q4 203 129 74 67 7 91%2013Q1 208 136 72 67 5 93%2013Q2 244 174 70 64 6 91%2013Q3 243 165 78 72 6 92%2013Q4 229 142 87 80 8 92%2014Q1 206 134 72 67 5 93%2014Q2 275 183 92 86 6 93%2014Q3 282 178 104 97 7 93%2014Q4 241 154 87 78 9 90%2015Q1 213 140 73 70 4 96%


Units in Buildings with 2 or More Units1-Family

Units

0

20

40

60

80

100

120

2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 2013Q1 2014Q1 2015Q1

Thou

sand

s of

uni

ts

2+ unit for sale

2+ unit for rent

33




Value of Commercial Real Estate Construction Put-In-Place April 2015 Data The value of selected commercial real estate (CRE)-related private construction put-in-place increased in the month of April, and was higher than the pace of construction in April 2014. The $281.4 billion seasonally adjusted annual rate in April was 3.2 percent higher than the March rate, and 27 percent higher than the April 2014 pace. The pace of construction in April was 76 percent higher than its recession low and 18 percent below its pre-recession high. Private MULTIFAMILY new construction activity continued to increase in April. April’s seasonally adjusted annual pace of $51.4 billion was three percent higher than March’s $49.9 billion and 25 percent higher than last April’s rate. The pace of construction in April was 293 percent higher than its recession low and seven percent below its pre-recession high. The value of private OFFICE construction put-in-place increased in April. April’s seasonally adjusted annual pace of $43.9 billion was 23 percent higher than last April’s rate. The pace of construction in April was 101 percent higher than its recession low and 25 percent below its pre-recession high. The value of private HEALTH CARE construction put-in-place increased three percent in April. April’s seasonally adjusted annual pace of $30.5 billion was eight percent higher than last April’s rate. The pace of construction in April was 11 percent higher than its recession low and 24 percent below its pre-recession high. The value of private RETAIL, WHOLESALE AND SELECTED SERVICES (referred to as COMMERCIAL by the Census Bureau) construction put-in-place increased three percent in April. April’s seasonally adjusted annual pace of $61.0 billion was 18 percent higher than last April’s rate. The pace of construction in April was 78 percent higher

than its recession low and 32 percent below its pre-recession high. The value of LODGING construction put-in-place increased six percent in April. April’s seasonally adjusted annual pace of $18.3 billion was 20 percent higher than last April’s rate. The pace of construction in April was 132 percent higher than its recession low and 51 percent below its pre-recession high. The value of MANUFACTURING construction put-in-place increased three percent in April. April’s seasonally adjusted annual pace of $76.2 billion was 54 percent higher than last April’s rate. The pace of construction in April was 156 percent higher than its recession low.

34




VALUE OF CONSTRUCTION PUT-IN-PLACE

Seasonally Adjusted Annual Rate

Value of Selected Private CRE-Related Construction Put-In-Place, $millions

Year-Over-Year % Change in Trailing Three Month Selected Private CRE-Related Construction

Source: MBA, U.S. Census Bureau

0

50,000

100,000

150,000

200,000

250,000

300,000

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200

0 -

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1 - J

an

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2010

- J

an

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an

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an

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2015

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an

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

200

0 -

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1 - J

an

200

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2010

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an

2011

- J

an

2012

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an

2013

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an

2014

- J

an

2015

- J

an

35





Seasonally Adjusted Annual RateValue of Selected Private CRE-Related Construction Put-In-Place, $millions


0

20,000

40,000

60,000

80,000

100,000

Manufacturing

0

10,000

20,000

30,000

40,000

50,000

60,000

Multifamily

0

20,000

40,000

60,000

80,000

100,000

Commercial (e.g. retail & warehouse)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Office

05,000

10,00015,000

20,00025,00030,00035,00040,000

200

0 -

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200

1 - J

an20

02

- Ja

n20

03

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n20

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- Ja

n20

05

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n20

06

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n20

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- Ja

n20

08

- Ja

n20

09

- Ja

n20

10 -

Jan

2011

- J

an20

12 -

Jan

2013

- J

an20

14 -

Jan

2015

- J

an

Lodging

0

10,000

20,000

30,000

40,000

50,000

200

0 -

Jan

200

1 - J

an20

02

- Ja

n20

03

- Ja

n20

04

- Ja

n20

05

- Ja

n20

06

- Ja

n20

07

- Ja

n20

08

- Ja

n20

09

- Ja

n20

10 -

Jan

2011

- J

an20

12 -

Jan

2013

- J

an20

14 -

Jan

2015

- J

an

Health Care

36





Seasonally Adjusted Annual RateValue of Selected Private CRE-Related Construction Put-In-Place, $millions

Multifamily Commercial Office Lodging Health Care Manufacturing Total % Change

Month-over-Month

2013 - Apr 30,672 46,487 27,063 12,408 30,102 45,677 192,409 -0.9%2013 - May 30,957 48,180 28,064 12,983 30,545 45,104 195,833 1.8%2013 - Jun 31,384 47,366 28,435 12,436 29,365 45,915 194,901 -0.5%2013 - Jul 30,708 48,005 29,493 12,917 30,214 46,576 197,913 1.5%2013 - Aug 32,539 47,894 29,892 13,697 29,758 49,011 202,791 2.5%2013 - Sep 34,445 49,638 31,378 13,951 30,185 46,273 205,870 1.5%2013 - Oct 35,640 51,307 31,951 14,543 30,733 46,672 210,846 2.4%2013 - Nov 37,349 53,307 33,059 15,350 30,434 48,711 218,210 3.5%2013 - Dec 36,729 53,101 33,669 14,324 29,357 51,043 218,223 0.0%2014 - Jan 37,557 50,279 33,646 14,089 29,014 52,307 216,892 -0.6%2014 - Feb 38,671 50,895 33,259 14,803 28,684 49,842 216,154 -0.3%2014 - Mar 39,865 51,263 33,467 14,062 28,393 46,326 213,376 -1.3%2014 - Apr 41,262 51,889 35,808 15,295 28,401 49,644 222,299 4.2%2014 - May 42,247 52,632 36,535 15,414 29,030 54,525 230,383 3.6%2014 - Jun 43,857 53,874 36,135 14,633 29,084 53,652 231,235 0.4%2014 - Jul 43,644 54,941 36,133 14,729 28,597 53,474 231,518 0.1%2014 - Aug 44,602 56,034 37,344 15,532 28,633 56,029 238,174 2.9%2014 - Sep 46,604 58,560 39,483 16,729 29,017 57,891 248,284 4.2%2014 - Oct 46,971 59,117 39,941 17,040 28,899 59,727 251,695 1.4%2014 - Nov 47,287 60,079 39,298 17,496 29,468 60,634 254,262 1.0%2014 - Dec 48,882 61,006 40,097 17,426 29,518 63,658 260,587 2.5%2015 - Jan 48,409 59,796 40,369 15,457 29,445 63,035 256,511 -1.6%2015 - Feb 50,738 58,745 41,281 16,453 29,768 68,754 265,739 3.6%2015 - Mar 49,857 59,164 42,485 17,323 29,679 74,192 272,700 2.6%2015 - Apr 51,415 61,033 43,888 18,348 30,537 76,217 281,438 3.2%

Mar - Apr 3.1% 3.2% 3.3% 5.9% 2.9% 2.7% 3.2%Apr - Apr 24.6% 17.6% 22.6% 20.0% 7.5% 53.5% 26.6%

Trough to current 293% 78% 101% 132% 11% 156% 76%Peak to current -7% -32% -25% -51% -24% 0% -18%


Selected Private CRE-Related Types of Construction

37




QUARTERLY SALES OF LARGER ($2.5 MILLION+)COMMERCIAL/MULTIFAMILY PROPERTIES

Billions of dollars, Properties and portfolios $2.5 million and greater

Source: Real Capital Analytics.

$-

$20

$40

$60

$80

$100

$120

$140

$160

200

1 Q1

200

1 Q2

200

1 Q3

200

1 Q4

200

2 Q

120

02

Q2

200

2 Q

320

02

Q4

200

3 Q

120

03

Q2

200

3 Q

320

03

Q4

200

4 Q

120

04

Q2

200

4 Q

320

04

Q4

200

5 Q

120

05

Q2

200

5 Q

320

05

Q4

200

6 Q

120

06

Q2

200

6 Q

320

06

Q4

200

7 Q

120

07

Q2

200

7 Q

320

07

Q4

200

8 Q

120

08

Q2

200

8 Q

320

08

Q4

200

9 Q

120

09

Q2

200

9 Q

320

09

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

Apartment Retail Industrial Office

38




QUARTERLY SALES OF LARGER ($2.5 MILLION+)COMMERCIAL/MULTIFAMILY PROPERTIES

Billions of dollars, Properties and portfolios $2.5 million and greater

Year Q1 Q2 Q3 Q4 SalesPercent change Sales

Percent change

APARTMENT2010 5.49$ 6.15$ 10.69$ 15.02$ 37.35$ 109% 5.49$ 84%2011 9.60$ 14.90$ 15.64$ 18.65$ 58.79$ 57% 9.60$ 75%2012 13.50$ 18.02$ 26.82$ 29.07$ 87.41$ 49% 13.50$ 41%2013 31.28$ 18.53$ 21.43$ 31.44$ 102.68$ 17% 31.28$ 132%2014 19.65$ 26.30$ 31.76$ 34.83$ 112.54$ 10% 19.65$ -37%2015 32.98$ 32.98$ 68%

INDUSTRIAL2010 3.09$ 3.90$ 5.32$ 8.61$ 20.92$ 93% 3.09$ 58%2011 4.38$ 15.35$ 7.48$ 9.10$ 36.32$ 74% 4.38$ 42%2012 5.87$ 9.21$ 8.38$ 15.83$ 39.29$ 8% 5.87$ 34%2013 7.81$ 10.43$ 14.43$ 15.22$ 47.89$ 22% 7.81$ 33%2014 10.67$ 12.54$ 13.16$ 17.06$ 53.42$ 12% 10.67$ 37%2015 20.96$ 20.96$ 97%

OFFICE2010 5.23$ 9.91$ 10.89$ 20.72$ 46.74$ 162% 5.23$ 27%2011 10.95$ 16.93$ 16.59$ 22.47$ 66.94$ 43% 10.95$ 109%2012 14.94$ 15.45$ 18.02$ 31.12$ 79.53$ 19% 14.94$ 36%2013 17.09$ 22.30$ 25.20$ 38.66$ 103.24$ 30% 17.09$ 14%2014 23.49$ 27.56$ 31.57$ 37.35$ 119.97$ 16% 23.49$ 37%2015 33.48$ 33.48$ 43%

RETAIL2010 3.77$ 4.30$ 6.64$ 8.41$ 23.12$ 41% 3.77$ 15%2011 6.74$ 16.65$ 9.22$ 11.94$ 44.56$ 93% 6.74$ 79%2012 12.53$ 13.18$ 10.19$ 21.16$ 57.05$ 28% 12.53$ 86%2013 9.50$ 14.15$ 19.89$ 19.40$ 62.94$ 10% 9.50$ -24%2014 22.87$ 15.68$ 20.05$ 25.46$ 84.07$ 34% 22.87$ 141%2015 23.98$ 23.98$ 5%

TOTAL2010 17.58$ 24.26$ 33.54$ 52.75$ 128.12$ 104% 17.58$ 43%2011 31.67$ 63.83$ 48.94$ 62.17$ 206.60$ 61% 31.67$ 80%2012 46.85$ 55.85$ 63.41$ 97.18$ 263.28$ 27% 46.85$ 48%2013 65.69$ 65.41$ 80.94$ 104.72$ 316.76$ 20% 65.69$ 40%2014 76.68$ 82.07$ 96.54$ 114.70$ 369.99$ 17% 76.68$ 17%2015 111.40$ 111.40$ 45%


Total YTD Q1

39




QUARTERLY SALES PRICES OF LARGER ($2.5 MILLION+)COMMERCIAL/MULTIFAMILY PROPERTIES

Properties and portfolios $2.5 million and greater

Sales price per unit or sq. ft. ($/sq. ft, or $1000/unit for apartment)

Capitalization rate


$0

$50

$100

$150

$200

$250

$300

$350

200

1 Q1

200

1 Q2

200

1 Q3

200

1 Q4

200

2 Q

120

02

Q2

200

2 Q

320

02

Q4

200

3 Q

120

03

Q2

200

3 Q

320

03

Q4

200

4 Q

120

04

Q2

200

4 Q

320

04

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200

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120

05

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05

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120

06

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320

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07

Q2

200

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320

07

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120

08

Q2

200

8 Q

320

08

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200

9 Q

120

09

Q2

200

9 Q

320

09

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

Apartment Industrial Office Retail Total

0%

2%

4%

6%

8%

10%

12%

200

1 Q1

200

1 Q2

200

1 Q3

200

1 Q4

200

2 Q

120

02

Q2

200

2 Q

320

02

Q4

200

3 Q

120

03

Q2

200

3 Q

320

03

Q4

200

4 Q

120

04

Q2

200

4 Q

320

04

Q4

200

5 Q

120

05

Q2

200

5 Q

320

05

Q4

200

6 Q

120

06

Q2

200

6 Q

320

06

Q4

200

7 Q

120

07

Q2

200

7 Q

320

07

Q4

200

8 Q

120

08

Q2

200

8 Q

320

08

Q4

200

9 Q

120

09

Q2

200

9 Q

320

09

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

Apartment Industrial Office Retail

40




QUARTERLY SALES PRICES OF LARGER ($2.5 MILLION+)COMMERCIAL/MULTIFAMILY PROPERTIES

Properties and portfolios $2.5 million and greater

Year Q1 Q2 Q3 Q4

Q1 Year-over-year % change Q1 Q2 Q3 Q4

Q1 Year-over-year % change

APARTMENT2010 103$ 86$ 105$ 100$ 27% 6.8% 6.9% 6.6% 6.5% 3%2011 97$ 93$ 107$ 104$ -6% 6.4% 6.5% 6.3% 6.3% -6%2012 107$ 101$ 104$ 121$ 11% 6.3% 6.2% 6.2% 6.1% -1%2013 117$ 108$ 105$ 116$ 9% 6.3% 6.3% 6.3% 6.2% -1%2014 109$ 114$ 129$ 133$ -7% 6.2% 6.2% 6.0% 6.1% -1%2015 133$ 22% 5.9% -5%

INDUSTRIAL2010 49$ 54$ 63$ 52$ -26% 8.1% 8.4% 8.4% 8.4% 2%2011 53$ 57$ 52$ 61$ 9% 8.0% 7.8% 7.7% 7.8% -2%2012 63$ 55$ 63$ 63$ 19% 7.7% 7.4% 7.5% 7.6% -4%2013 63$ 64$ 66$ 67$ 0% 7.6% 7.6% 7.5% 7.5% -1%2014 66$ 67$ 77$ 73$ 5% 7.3% 7.2% 7.2% 7.0% -5%2015 81$ 22% 6.9% -5%

OFFICE2010 129$ 197$ 206$ 225$ -47% 8.4% 8.0% 7.6% 7.4% 10%2011 209$ 213$ 218$ 217$ 62% 7.6% 7.5% 7.3% 7.3% -10%2012 198$ 208$ 210$ 231$ -5% 7.2% 7.2% 7.2% 7.1% -5%2013 206$ 216$ 231$ 235$ 4% 7.1% 6.7% 7.0% 6.9% -1%2014 227$ 244$ 250$ 225$ 10% 6.8% 6.9% 6.8% 6.8% -4%2015 286$ 26% 6.5% -5%

RETAIL2010 137$ 129$ 142$ 154$ -8% 8.1% 7.8% 7.8% 7.6% 12%2011 172$ 147$ 192$ 175$ 25% 7.6% 7.6% 7.4% 7.4% -6%2012 159$ 191$ 163$ 229$ -8% 7.3% 7.3% 7.2% 7.2% -4%2013 151$ 177$ 171$ 180$ -5% 7.1% 7.0% 7.1% 7.0% -3%2014 201$ 202$ 207$ 200$ 33% 6.8% 6.9% 6.8% 6.6% -4%2015 230$ 14% 6.4% -5%

TOTAL2010 95$ 107$ 117$ 114$ -18% 7.8% 7.7% 7.5% 7.4% 6%2011 116$ 103$ 118$ 124$ 22% 7.3% 7.4% 7.1% 7.1% -7%2012 125$ 114$ 118$ 135$ 8% 7.0% 6.9% 6.8% 6.9% -3%2013 122$ 126$ 125$ 136$ -2% 6.8% 6.8% 6.9% 6.8% -4%2014 137$ 135$ 151$ 146$ 12% 6.7% 6.7% 6.6% 6.6% -1%2015 153$ 11% 6.4% -5%


($/sq. ft)

($1000/unit or $/sq. ft)*

Price per unit or sq. ft. Capitalization Rate

($/sq. ft)

($/sq. ft)

($1000/unit)

41




COMMERCIAL/MULTIFAMILY PROPERTY PRICES AS REFLECTEDIN SELECTED INDICES

Re-Indexed Values of the Moody's/RCA CPPI,NCREIF Transaction Based Index, and Green Street Advisors CPPI

December 2000 = 100

January 2007 = 100

Source: Mortgage Bankers Association, Real Capital Analytics, Moody's Investors Services, National Council of Real Estate Investment Fiduciaries, and Green Street Advisors

90100110120130140150160170180190

200210

Dec

20

00

Jun

200

1D

ec 2

00

1Ju

n 20

02

Dec

20

02

Jun

200

3D

ec 2

00

3Ju

n 20

04

Dec

20

04

Jun

200

5D

ec 2

00

5Ju

n 20

06

Dec

20

06

Jun

200

7D

ec 2

00

7Ju

n 20

08

Dec

20

08

Jun

200

9D

ec 2

00

9Ju

n 20

10D

ec 2

010

Jun

2011

Dec

20

11Ju

n 20

12D

ec 2

012

Jun

2013

Dec

20

13Ju

n 20

14D

ec 2

014

Moodys/RCA CPPI NCREIF TBI GSA CPPI

50

60

70

80

90

100

110

120

130

Jan

200

7M

ay 2

00

7Se

p 20

07

Jan

200

8M

ay 2

00

8Se

p 20

08

Jan

200

9M

ay 2

00

9Se

p 20

09

Jan

2010

May

20

10Se

p 20

10Ja

n 20

11M

ay 2

011

Sep

2011

Jan

2012

May

20

12Se

p 20

12Ja

n 20

13M

ay 2

013

Sep

2013

Jan

2014

May

20

14Se

p 20

14Ja

n 20

15

Moody's/RCA CPPI NCREIF TBI GSA CPPI

42




COMMERCIAL/MULTIFAMILY PROPERTY PRICES AS REFLECTEDIN SELECTED INDICES

Changes in the Moody's/RCA CPPI, NCREIF Transaction Based Index and Green Street Advisors CPPI

Moody's/ RCA CPPI NCREIF TBIGreen Street Advisors

CPPI

2003 -- December 7.2% 2.8% 9.9%2004 -- December 13.3% 8.6% 15.3%2005 -- December 18.2% 22.6% 13.0%2006 -- December 6.9% 18.9% 10.8%2007 -- December 9.9% 4.5% 7.0%2008 -- December -19.1% -14.7% -29.8%2009 -- December -26.1% -20.0% -2.6%2010 -- December 10.0% 17.5% 20.9%2011 -- December 8.9% 4.7% 11.7%2012 -- December 9.4% 3.7% 5.7%2013 -- December 16.1% 9.5% 7.3%2014 -- December 13.9% 10.0% 10.0%

Quarter-over-quarter Month-over month Month-over month

Moody's/RCA CPPI NCREIF TBIGreen Street Advisors

CPPI Moody's/RCA CPPI2013 -- March 2.2% 1.8% 1.5% 0.7%2013 -- April 0.8% 1.1%2013 -- May 2.8% 2.7%2013 -- June 5.1% 6.6% 0.0% 1.2%2013 -- July -0.6% 1.5%2013 -- August 0.6% 1.4%2013 -- September 4.5% 3.4% 0.0% 1.6%2013 -- October 0.0% 0.9%2013 -- November 1.0% 1.2%2013 -- December 3.4% -2.4% 0.2% 1.4%2014 -- January 0.0% 0.8%2014 -- February 1.0% 1.0%2014 -- March 2.9% -0.8% 0.0% 1.0%2014 -- April 0.6% 1.4%2014 -- May 2.2% 1.6%2014 -- June 4.6% 5.8% 0.3% 1.6%2014 -- July 0.0% 0.9%2014 -- August 2.1% 1.1%2014 -- September 2.6% -0.5% 1.0% 0.6%2014 -- October 0.3% 2.0%2014 -- November 2.1% 0.9%2014 -- December 3.1% 5.3% 0.0% 0.3%2015 -- January 1.0% 1.9%2015 -- February 1.0% 1.4%2015 -- March 4.7% 0.2% 0.1% 1.4%

Current price relative to 2007 peak 102% 114% 108%

Source: Mortgage Bankers Association, Real Capital Analytics, Moody's Investors Services, National Council of Real Estate Investment Fiduciaries, and Green Street Advisors


43




3. Production Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations May 4, 2015 According to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, first quarter 2015 commercial and multifamily mortgage loan originations were 49 percent higher than during the same period last year. Following the usual seasonal pattern, first quarter 2015 originations saw a 26 percent decrease in originations from the fourth quarter of 2014. “The year-end momentum from 2014 carried into the first quarter of 2015, with year-over-year growth in lending for every major property type,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Multifamily lending was a key driver of first quarter originations and the GSEs drove multifamily. The GSEs’ multifamily originations increased by 306 percent compared to Q1 2014, marking their second highest quarter on record, while multifamily originations for other capital sources appear to have remained flat or declined.” FIRST QUARTER 2015 ORIGINATIONS 49 PERCENT HIGHER THAN FIRST QUARTER 2014

Increases in originations for industrial and multifamily properties led the overall increase in commercial/multifamily lending volumes when compared to the first quarter of 2014. The increase included a 269 percent increase in the dollar volume of loans for industrial properties, a 71 percent increase for multifamily properties, a 53 percent increase for office properties, a 51 percent increase for hotel properties, and a five percent increase in retail property loans. Health care property loans were essentially unchanged year-over-year. Among investor types, the dollar volume of loans originated for Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) increased by 306 percent from last year’s first quarter. There was a 113 percent increase for Commercial Mortgage Backed Securities (CMBS) loans, a 51 percent increase for life insurance company loans, and a one percent decrease in dollar volume for commercial bank portfolio loans. FIRST QUARTER 2015 ORIGINATIONS DOWN 26 PERCENT FROM FOURTH QUARTER 2014

Commercial/Multifamily Mortgage Bankers Originations Index 2001 quarterly average = 100

050

100150

200250300350400

200

2Q1

200

2Q2

200

2Q3

200

2Q4

200

3Q1

200

3Q2

200

3Q3

200

3Q4

200

4Q

120

04

Q2

200

4Q

320

04

Q4

200

5Q1

200

5Q2

200

5Q3

200

5Q4

200

6Q

120

06

Q2

200

6Q

320

06

Q4

200

7Q1

200

7Q2

200

7Q3

200

7Q4

200

8Q

120

08

Q2

200

8Q

320

08

Q4

200

9Q

120

09

Q2

200

9Q

320

09

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

44




First quarter 2015 originations for health care properties decreased 62 percent compared to the fourth quarter 2014. There was a 57 percent decrease in originations for retail properties, a 33 percent decrease for hotel properties, a 31 percent decrease for multifamily properties, a 25 percent decrease for office properties, and a 127 percent increase for industrial properties from the fourth quarter 2014. Among investor types, between the fourth quarter of 2014 and first quarter of 2015, the dollar volume of loans for commercial bank portfolios decreased 23 percent, loans for life insurance companies decreased 18 percent, originations for CMBS decreased 14 percent, and loans for GSEs decreased by 13 percent. To view the report, please visit the following Web link: https://www.mba.org/Documents/mba.org/files/Research/CommercialOriginations/1Q15%20Quarterly%20Origination.pdf Detailed statistics on the size and scope of the commercial/multifamily origination market are available from these MBA commercial/multifamily research reports.

Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation, 2014

Commercial Real Estate/Multifamily

Finance Firms: Annual Origination Volumes, 2014

Annual Report on Multifamily Lending,

2013

Commercial/Multifamily Database Subscription

45




Commercial/Multifamily Mortgage Bankers Originations IndexBy Investor Group

Q1 Q2 Q3 Q4 Q4-to-

Q1 YTD-YTD

TOTAL2010 45 61 70 114 12% -26% 12%2011 83 126 138 129 84% -27% 84%2012 113 157 129 192 36% -12% 36%2013 123 167 166 223 9% -36% 9%2014 122 164 193 246 -1% -45% -1%2015 182 49% -26% 49%

CMBS/Conduits2010 5 11 16 62 657% 430% 657%2011 26 80 42 31 389% -58% 389%2012 23 94 42 102 -10% -25% -10%2013 63 80 87 117 170% -38% 170%2014 50 116 127 124 -21% -57% -21%2015 106 113% -14% 113%

Commercial Banks2010 45 44 32 64 -4% -48% -4%2011 77 109 169 143 73% 21% 73%2012 158 172 182 240 104% 11% 104%2013 171 196 257 370 8% -29% 8%2014 265 233 216 343 55% -28% 55%2015 263 -1% -23% -1%

Life Insurance Companies2010 94 147 176 250 131% 1% 131%2011 200 274 282 216 114% -20% 114%2012 220 302 191 255 10% 2% 10%2013 175 349 328 356 -21% -31% -21%2014 207 304 332 384 18% -42% 18%2015 314 51% -18% 51%

Fannie Mae/Freddie Mac2010 70 85 120 202 -49% -43% -49%2011 112 134 176 236 59% -45% 59%2012 157 201 230 355 40% -33% 40%2013 214 217 137 202 36% -40% 36%2014 95 190 298 443 -55% -53% -55%2015 387 306% -13% 306%

(2001 Avg Qtr = 100)Origination Volume Index Percent Change,

Year-over-

year Q1

46




Commercial/Multifamily Mortgage Bankers Originations IndexBy Property Type

Q1 Q2 Q3 Q4Q4-to-

Q1 YTD-YTDMultifamily

2010 49 67 101 138 -5% -37% -5%2011 98 143 140 181 102% -29% 102%2012 141 170 182 270 45% -22% 45%2013 184 224 187 269 30% -32% 30%2014 152 201 264 375 -17% -44% -17%2015 260 71% -31% 71%

Office2010 35 55 45 79 29% 20% 29%2011 64 84 91 56 83% -19% 83%2012 58 97 69 99 -9% 4% -9%2013 55 96 117 127 -6% -45% -6%2014 63 91 130 130 15% -50% 15%2015 97 53% -25% 53%

Retail2010 85 75 84 184 98% -11% 98%2011 94 162 222 169 11% -49% 11%2012 196 253 145 177 109% 17% 109%2013 147 218 188 252 -25% -17% -25%2014 119 195 208 293 -19% -53% -19%2015 125 5% -57% 5%

Industrial2010 57 123 145 150 -28% -24% -28%2011 156 165 142 214 172% 4% 172%2012 107 157 168 313 -32% -50% -32%2013 109 157 182 218 2% -65% 2%2014 165 188 223 269 52% -24% 52%2015 610 269% 127% 269%

Hotel2010 20 99 46 198 -46% -73% -46%2011 118 222 231 110 506% -40% 506%2012 109 271 239 475 -7% -1% -7%2013 148 280 349 432 35% -69% 35%2014 212 407 364 479 44% -51% 44%2015 322 51% -33% 51%

Health Care2010 26 54 99 301 -68% -91% -68%2011 50 130 91 229 91% -83% 91%2012 108 144 108 169 118% -53% 118%2013 92 93 242 287 -15% -45% -15%2014 101 181 138 265 10% -65% 10%2015 102 0% -62% 0%

(2001 Avg Qtr = 100)Origination Volume Index Percent Change,

Year-over-

year Q1

47




QUARTERLY ISSUANCE OFCOMMERCIAL MORTGAGE BACKED SECURITIES (CMBS) andCOMMERCIAL REAL ESTATE COLLATERALIZED DEBT OBLIGATIONS (CDOs)

Billions of Dollars

Source: Commercial Real Estate Direct

$-

$10

$20

$30

$40

$50

$60

$70

$80

200

0 Q

120

00

Q2

200

0 Q

320

00

Q4

200

1 Q1

200

1 Q2

200

1 Q3

200

1 Q4

200

2 Q

120

02

Q2

200

2 Q

320

02

Q4

200

3 Q

120

03

Q2

200

3 Q

320

03

Q4

200

4 Q

120

04

Q2

200

4 Q

320

04

Q4

200

5 Q

120

05

Q2

200

5 Q

320

05

Q4

200

6 Q

120

06

Q2

200

6 Q

320

06

Q4

200

7 Q

120

07

Q2

200

7 Q

320

07

Q4

200

8 Q

120

08

Q2

200

8 Q

320

08

Q4

200

9 Q

120

09

Q2

200

9 Q

320

09

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

CMBS CRE CDO/Re-Remics

48




QUARTERLY ISSUANCE OFCOMMERCIAL MORTGAGE BACKED SECURITIES (CMBS) andCOMMERCIAL REAL ESTATE COLLATERALIZED DEBT OBLIGATIONS (CRE CDOs)/RE-REMICS

Billions of Dollars

Year Q1 Q2 Q3 Q4 TotalPercent change Total

Percent change

U.S. CMBS ISSUANCE

2005 33.13$ 39.37$ 38.27$ 57.40$ 168.17$ 79% 33.13$ 74%2006 46.01$ 42.18$ 42.25$ 72.25$ 202.69$ 21% 46.01$ 39%2007 60.85$ 75.92$ 60.10$ 33.30$ 230.17$ 14% 60.85$ 32%2008 5.91$ 6.24$ -$ -$ 12.15$ -95% 5.91$ -90%2009 -$ 1.79$ -$ 3.18$ 4.97$ -59% -$ -100%2010 -$ 2.91$ 1.93$ 6.18$ 11.01$ 121% -$ N/A2011 8.24$ 7.66$ 9.62$ 4.46$ 29.97$ 172% 8.24$ N/A2012 5.19$ 11.42$ 11.44$ 16.37$ 44.41$ 48% 5.19$ -37%2013 21.80$ 19.59$ 15.31$ 23.56$ 80.26$ 81% 21.80$ 320%2014 19.76$ 19.57$ 27.33$ 23.21$ 89.87$ 12% 19.76$ -9%2015 26.23$ 26.23$ 33%

CRE CDO/RE-REMICS ISSUANCE

2005 4.29$ 4.42$ 6.72$ 5.90$ 21.33$ 173% 4.29$ 268%2006 6.43$ 7.18$ 10.70$ 12.26$ 36.57$ 71% 6.43$ 50%2007 6.61$ 13.56$ 5.09$ 3.40$ 28.66$ -22% 6.61$ 3%2008 -$ -$ -$ -$ -$ -100% -$ -100%2009 -$ 0.71$ 0.32$ -$ 1.03$ N/A -$ N/A2010 -$ 0.15$ 0.32$ 0.94$ 1.40$ 36% -$ N/A2011 -$ -$ -$ -$ -$ -100% -$ N/A2012 -$ -$ -$ -$ -$ N/A -$ N/A2013 -$ -$ -$ -$ -$ N/A -$ N/A2014 -$ -$ -$ -$ N/A -$ N/A2015 -$ -$ N/A

TOTAL

2005 37.42$ 43.79$ 44.99$ 63.30$ 189.50$ 87% 37.42$ 86%2006 52.43$ 49.37$ 52.95$ 84.52$ 239.26$ 26% 52.43$ 40%2007 67.46$ 89.48$ 65.19$ 36.70$ 258.82$ 8% 67.46$ 29%2008 5.91$ 6.24$ -$ -$ 12.15$ -95% 5.91$ -91%2009 -$ 2.51$ 0.32$ 3.18$ 6.01$ -51% -$ -100%2010 -$ 3.05$ 2.25$ 7.11$ 12.41$ 107% -$ N/A2011 8.24$ 7.66$ 9.62$ 4.46$ 29.97$ 141% 8.24$ N/A2012 5.19$ 11.42$ 11.44$ 16.37$ 44.41$ 48% 5.19$ -37%2013 21.80$ 19.59$ 15.31$ 23.56$ 80.26$ 81% 21.80$ 320%2014 19.76$ 19.57$ 27.33$ 23.21$ 89.87$ 12% 19.76$ -9%2015 26.23$ 26.23$ 33%

Source: Commercial Real Estate Direct

Annual YTD Q1

49




QUARTERLY COMMERCIAL MORTGAGE COMMITMENTS BY LIFE INSURANCE COMPANIES

Billions of Dollars

$18

$14

$16

$18

$8

$10

$12

$14

$2

$4

$6

$8

S A i C il f Lif I C i (ACLI)

$-

$2

200

1 Q1

200

1 Q2

200

1 Q3

200

1 Q4

200

2 Q

120

02

Q2

200

2 Q

320

02

Q4

200

3 Q

120

03

Q2

200

3 Q

320

03

Q4

200

4 Q

120

04

Q2

200

4 Q

320

04

Q4

200

5 Q

120

05

Q2

200

5 Q

320

05

Q4

200

6 Q

120

06

Q2

200

6 Q

320

06

Q4

200

7 Q

120

07

Q2

200

7 Q

320

07

Q4

200

8 Q

120

08

Q2

200

8 Q

320

08

Q4

200

9 Q

120

09

Q2

200

9 Q

320

09

Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

Source: American Council of Life Insurance Companies (ACLI)a. Annual figures may not equal the sum of quarterly figures due to change in reporting.

50




QUARTERLY COMMERCIAL MORTGAGE COMMITMENTS BY LIFE INSURANCE COMPANIES

Billions of Dollars


Percent change

2001 5.95$ 7.56$ 7.33$ 6.08$ 26.92$ 5.95$ 2002 5.69$ 6.34$ 7.12$ 9.17$ 28.32$ 5% 5.69$ -4%2003 7.22$ 7.88$ 9.28$ 8.30$ 32.68$ 15% 7.22$ 27%2004 7.46$ 12.11$ 10.20$ 8.91$ 38.67$ 18% 7.46$ 3%2005 7.33$ 12.37$ 10.96$ 12.51$ 43.17$ 12% 7.33$ -2%2006 9.76$ 12.66$ 11.35$ 10.31$ 44.08$ 2% 9.76$ 33%2007 9.29$ 10.25$ 11.49$ 11.67$ 42.69$ -3% 9.29$ -5%2008 9.59$ 6.03$ 7.03$ 4.02$ 26.67$ -38% 9.59$ 3%2009 2.62$ 4.63$ 4.30$ 4.83$ 16.39$ -39% 2.62$ -73%2010 4.90$ 5.94$ 9.47$ 10.39$ 30.71$ 87% 4.90$ 87%2011 7.83$ 15.73$ 11.10$ 10.85$ 45.52$ 48% 7.83$ 60%2012 9.18$ 14.90$ 10.75$ 10.78$ 45.60$ 0% 9.18$ 17%2013 8.15$ 15.19$ 14.70$ 14.45$ 52.50$ 15% 8.15$ -11%2014 10.38$ 14.80$ 11.64$ 16.16$ 52.98$ 1% 10.38$ 27%2015 12.08$ 12.08$ 16%

Source: American Council of Life Insurance Companies (ACLI)a. Annual figures may not equal the sum of quarterly figures due to changes in reporting.

Annual (a) YTD Q1

51




4. Commercial/Multifamily Mortgage Debt Outstanding June 16, 2015 The level of commercial/multifamily mortgage debt outstanding increased by $40.4 billion in the first quarter of 2015, as all four major investor groups increased their holdings. That is a 1.5 percent increase over the fourth quarter of 2014. Total commercial/multifamily debt outstanding stood at $2.68 trillion at the end of the first quarter. Multifamily mortgage debt outstanding rose to $989 billion, an increase of $20.6 billion, or 2.1 percent, from the fourth quarter of 2014. “Strong first quarter mortgage originations boosted the level of commercial and multifamily mortgage debt outstanding,” said

Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Multifamily mortgages continued to grow even more quickly than the market as a whole, with banks increasing their portfolios by $8 billion and agency and GSE portfolios and MBS increasing their holdings by $10 billion.“ The four major investor groups are: bank and thrift; commercial mortgage backed securities (CMBS), collateralized debt obligation (CDO) and other asset backed securities (ABS) issues; federal agency and government sponsored enterprise (GSE) portfolios and mortgage backed securities (MBS); and life Insurance companies.

Commercial Multifamily Mortgage Debt Outstanding By Investor Group, First Quarter 2015

52




The analysis summarizes the holdings of loans or, if the loans are securitized, the form of the security. For example, many life insurance companies invest both in whole loans for which they hold the mortgage note (and which appear in this data under Life Insurance Companies) and in CMBS, CDOs and other ABS for which the security issuers and trustees hold the note (and which appear here under CMBS, CDO and other ABS issues). Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $985 billion, or 37 percent of the total. CMBS, CDO and other ABS issues are the second largest holders of commercial/multifamily mortgages, holding $534 billion, or 20 percent of the total. Agency and GSE portfolios and MBS hold $422 billion, or 16 percent of the total, and life insurance companies hold $363 billion, or 14 percent of the total. Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the “CMBS, CDO and other ABS” category. MULTIFAMILY MORTGAGE DEBT OUTSTANDING Looking solely at multifamily mortgages, agency and GSE portfolios and MBS hold the largest share, with $422 billion, or 43 percent of the total multifamily debt outstanding. They are followed by banks and thrifts with $305 billion, or 31 percent of the total. State and local government hold $92 billion, or 9 percent of the total; CMBS, CDO and other ABS issues hold $71 billion, or seven percent of the total; life insurance companies hold $57 billion, or 6 percent of the total, and federal government holds $13 billion, or one percent of the total. CHANGES IN COMMERCIAL/MULTIFAMILY MORTGAGE DEBT OUTSTANDING In the first quarter of 2015, banks and thrifts saw the largest increase in dollar terms in their holdings of commercial/multifamily mortgage debt – an increase of $18.4 billion, or 1.9 percent. Agency and GSE portfolios and MBS increased their holdings by $10.0

billion, or 2.4 percent, and life insurance companies increased their holdings by $5.2 billion, or 1.4 percent. Private pension funds saw the largest decrease at $728 million, or down 4.0 percent. In percentage terms, other insurance companies saw the largest increase in their holdings of commercial/multifamily mortgages, an increase of 5 percent. Private pension funds and nonfinancial corporate business saw their holdings decrease 4 percent. CHANGES IN MULTIFAMILY MORTGAGE DEBT OUTSTANDING The $20.6 billion increase in multifamily mortgage debt outstanding between the fourth quarter of 2014 and first quarter of 2015 represents a 2.1 percent increase. In dollar terms, agency and GSE portfolios and MBS saw the largest increase in their holdings of multifamily mortgage debt, an increase of $10.0 billion, or 2.4 percent. Commercial banks increased their holdings of multifamily mortgage debt by $8.0 billion, or 2.7 percent. State and local government increased by $3.9 billion, or 4.4 percent. CMBS, CDO and other ABS issues saw the largest decline in their holdings of multifamily mortgage debt, by $2.1 billion, or down 2.8 percent. In percentage terms, State and local government recorded the largest increase in holdings of multifamily mortgages, at 4 percent. Private pension funds saw the biggest decrease at 4 percent. MBA’s complete Commercial/Multifamily Mortgage Debt Outstanding report can be downloaded here. MBA’s analysis is based on data from the Federal Reserve Board’s Financial Accounts of the United States, the Federal Deposit Insurance Corporation’s Quarterly Banking Profile and data from Wells Fargo Securities. More information on this data series is contained in Appendix A.

53




COMMERCIAL AND MULTIFAMILY MORTGAGE DEBT OUTSTANDING

Total Commercial and Multifamily Mortgage Debt Outstanding, by Quarter

($millions)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2007

Q1

2007

Q2

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q20

09Q

120

09Q

220

09Q

320

09Q

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

MF Commercial

Source: MBA, Federal Reserve Board of Governors, Wells Fargo Securities, LLC, Intex Solutions, Inc. and FDIC

54




QUARTERLY COMMERCIAL AND MULTIFAMILY MORTGAGE DEBT OUTSTANDING

Commercial and Multifamily Mortgage Debt Outstanding, by Sector

Mortgage Debt Outstanding

2015 Q1

($millions) Percent

2014 Q4Change

($millions)% of total ($millions)

% of total

Sector Share of $ Change

Bank and Thrift 985,056 966,671 18,385 1.9%36.7% 36.6% 45.6%

CMBS, CDO and other ABS issues 533,867 533,608 259 0.0%19.9% 20.2% 0.6%

Agency and GSE portfolios and MBS 422,124 412,166 9,958 2.4%15.7% 15.6% 24.7%

Life insurance companies 362,764 357,580 5,184 1.4%13.5% 13.5% 12.8%

State and local government 109,903 105,228 4,675 4.4%4.1% 4.0% 11.6%

Federal government 85,028 85,217 -189 -0.2%3.2% 3.2% -0.5%

REITs 54,372 52,675 1,697 3.2%2.0% 2.0% 4.2%

Finance companies 43,723 43,363 360 0.8%1.6% 1.6% 0.9%

Nonfarm noncorporate business 22,822 22,458 364 1.6%0.9% 0.9% 0.9%

Household sector 19,451 18,973 478 2.5%0.7% 0.7% 1.2%

Private pension funds 17,381 18,109 -728 -4.0%0.6% 0.7% -1.8%

Other insurance companies 10,420 9,947 473 4.8%0.4% 0.4% 1.2%

Nonfinancial corporate business 8,014 8,352 -338 -4.0%0.3% 0.3% -0.8%

State and local government retirement funds 6,270 6,494 -224 -3.4%0.2% 0.2% -0.6%

2,681,195 2,640,841TOTAL 40,354 1.5%


Note: Beginning with the Q2 2014 release, MBA’s analysis of mortgage debt outstanding modifies the data from the Federal Reserve’s Financial Accounts of the United States with respect to loans held in commercial mortgage-backed securities (CMBS) and by real estate investment trusts (REITs). The corrections create differences with previous releases and with the Federal Reserve data. For more information, please see the Appendix to this report.

55





Total Commercial and Multifamily Mortgage Debt Outstanding, by Sector

($millions)


6,270

8,014

10,420

17,381

19,451

22,822

43,723

54,372

85,028

109,903

362,764

422,124

533,867

985,056

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

State and local government retirement funds

Nonfinancial corporate business

Other insurance companies

Private pension funds

Household sector

Nonfarm noncorporate business

Finance companies

REITs

Federal government

State and local government

Life insurance companies

Agency and GSE portfo lios and M BS

CM BS, CDO and other ABS issues

Bank and Thrift

2014Q4 2015Q1

56





Total Commercial and Multifamily Mortgage Debt Outstanding, by Selected Sector by Quarter($millions)


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1995

Q1

1996

Q1

1997

Q1

1998

Q1

1999

Q1

200

0Q

1

200

1Q1

200

2Q1

200

3Q1

200

4Q1

200

5Q1

200

6Q1

200

7Q1

200

8Q1

200

9Q1

2010

Q1

2011Q

1

2012

Q1

2013

Q1

2014

Q1

2015

Q1

Agency and GSE portfolios and MBS Bank and Thrift

CMBS, CDO and other ABS issues Life insurance companies

57




COMMERCIAL AND MULTIFAMILY MORTGAGE FLOWS

Net Change in Commercial and Multifamily Mortgage Debt Outstanding,

($millions)

by Quarter


(40,000)

(20,000)

0

20,000

40,000

60,000

80,000

100,000

200

7Q2

200

7Q3

200

7Q4

200

8Q1

200

8Q2

200

8Q3

200

8Q4

200

9Q1

200

9Q2

200

9Q3

200

9Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011Q

120

11Q2

2011Q

320

11Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

MF Commercial TOTAL

58




COMMERCIAL AND MULTIFAMILY MORTGAGE FLOWS

Net Change in Commercial and Multifamily Mortgage Debt Outstanding,

($millions)

by Sector


(728)

(224)

260

360

364

473

478

1,697

4,675

5,184

9,958

18,385

(339)

(189)

(5,000) 0 5,000 10,000 15,000 20,000 25,000




Federal government


Finance companies


Other insurance companies

Household sector

REITs




Bank and Thrift

2014Q4 2015Q1

59




MULTIFAMILY MORTGAGE DEBT OUTSTANDING

60





Total Multifamily Mortgage Debt Outstanding, by Quarter

($millions)


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2007

Q1

2007

Q2

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q20

09Q

120

09Q

220

09Q

320

09Q

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

61




QUARTERLY MULTIFAMILY MORTGAGE DEBT OUTSTANDING

Multifamily Mortgage Debt Outstanding, by Sector

Mortgage Debt Outstanding

2015 Q1

($millions) Percent

2014 Q4Change

($millions)% of total ($millions)

% of total

Sector Share of $ Change

Agency and GSE portfolios and MBS 422,124 412,166 9,958 2.4%42.7% 42.6% 48.4%

Bank and Thrift 305,334 297,352 7,982 2.7%30.9% 30.7% 38.8%

State and local government 91,586 87,690 3,896 4.4%9.3% 9.1% 18.9%

CMBS, CDO and other ABS issues 71,445 73,539 -2,094 -2.8%7.2% 7.6% -10.2%

Life insurance companies 57,086 56,362 724 1.3%5.8% 5.8% 3.5%

Federal government 13,080 13,162 -82 -0.6%1.3% 1.4% -0.4%

Nonfarm noncorporate business 12,593 12,392 201 1.6%1.3% 1.3% 1.0%

REITs 8,373 8,187 186 2.3%0.8% 0.8% 0.9%

State and local government retirement funds 2,939 3,044 -105 -3.4%0.3% 0.3% -0.5%

Private pension funds 2,056 2,142 -86 -4.0%0.2% 0.2% -0.4%

Finance companies 2,053 2,043 10 0.5%0.2% 0.2% 0.0%

Nonfinancial corporate business 383 385 -2 -0.5%0.0% 0.0% 0.0%

989,052 968,464TOTAL 20,588 2.1%


Note: Beginning with the Q2 2014 release, MBA’s analysis of mortgage debt outstanding modifies the data from the Federal Reserve’s Financial Accounts of the United States with respect to loans held in commercial mortgage-backed securities (CMBS) and by real estate investment trusts (REITs). The corrections create differences with previous releases and with the Federal Reserve data. For more information, please see the Appendix to this report.

62





Total Multifamily Mortgage Debt Outstanding, by Sector

($millions)


383

2,053

2,056

2,939

8,373

12,593

13,080

57,086

71,445

91,586

305,334

422,124

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000


Finance companies



REITs


Federal government




Bank and Thrift


2014Q4 2015Q1

63





Total Multifamily Mortgage Debt Outstanding, by Selected Sector

($millions)

by Quarter


0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

198

0Q

1

198

2Q1

198

4Q

1

198

6Q

1

198

8Q

1

199

0Q

1

199

2Q1

199

4Q

1

199

6Q

1

199

8Q

1

200

0Q

1

200

2Q1

200

4Q

1

200

6Q

1

200

8Q

1

2010

Q1

2012

Q1

2014

Q1

Agency and GSE portfolios and MBS Bank and Thrift

CMBS, CDO and other ABS issues Life insurance companies


64




MULTIFAMILY MORTGAGE FLOWS

Net Change in Multifamily Mortgage Debt Outstanding, by Quarter

($millions)


(5,000)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

200

7Q2

200

7Q3

200

7Q4

200

8Q1

200

8Q2

200

8Q3

200

8Q4

200

9Q1

200

9Q2

200

9Q3

200

9Q4

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011Q

120

11Q2

2011Q

320

11Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

65




MULTIFAMILY MORTGAGE FLOWS

Net Change in Multifamily Mortgage Debt Outstanding, by Sector

($millions)


-2,094

-105

-86

-82

10

186

201

724

3,896

7,982

9,958

-3

(4,000) (2,000) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000




Federal government


Finance companies

REITs




Bank and Thrift


2014Q4 2015Q1

66




APPENDIX A MBA’s analysis is based on data from the Federal Reserve Board’s Financial Accounts of the United States, the Federal Deposit Insurance Corporation’s Quarterly Banking Profile and data from Wells Fargo Securities. Bank Holdings MBA’s analysis of commercial and multifamily mortgage debt outstanding was changed in the fourth quarter of 2010 to exclude two categories of loans that had previously been included;

a. loans for acquisition, development and construction and

b. loans collateralized by owner-occupied commercial properties.

By excluding these loan types, MBA’s analysis more accurately reflects the balance of loans supported by office buildings, retail centers, apartment buildings and other income-producing properties that rely on rents and leases to make their payments. For the first quarter 2015, the Federal Reserve Board’s Flow of Funds Accounts data attributed $1.7 trillion of outstanding commercial and multifamily mortgages to banks and thrifts. Comparing this number to the FDIC’s Quarterly Banking Profile for the same period, one sees that banks and thrifts held $305.3 billion of multifamily mortgages and $1,163.4 billion of non-farm nonresidential mortgages, of which 58 percent or $680 billion were income-producing. The combined $985 billion of mortgages backed by multifamily and other income-producing properties is included in this analysis. The $1.7 trillion total reported by the Federal Reserve also includes $484 billion of loans collateralized by owner-occupied commercial properties and another $231 billion of loans backed by acquisition, development and construction projects (including those for single-family development), which are excluded in from this analysis.

Estimated Components of Federal Reserve’s Flow of Funds “Commercial and Multifamily Mortgages” Held by Banks and Thrifts ($Billions)

Source: MBA, Federal Reserve Board of Governors, and FDIC Mortgages in CMBS and held by REITs Beginning with its Q2 2014 release, the Federal Reserve’s Financial Accounts of the United States adjusted its balance of commercial mortgages held in CMBS and by REITs to reflect the impact of FAS 167 and its implications for how entities report certain securitized mortgages on their balance sheets. The effect of this change was to inflate the balance of mortgages appearing under REITs by approximately $130 billion and to reduce the balance appearing under CMBS by the same amount. From an accounting perspective, such changes are required, but the changes lead to a significant distortion of the size of the CMBS and REIT markets.

Construction loans, $230.7

Owner-occupied

commercial mortgages,

$483.7

Income-producing

commercial mortgages,

$679.7

Multifamily mortgages,

$305.3

67




For CMBS, MBA corrects for this by relying on data from Wells Fargo Securities to size the balance of commercial and multifamily mortgages in CMBS. (The analysis continues to rely on the Financial Accounts of the United States to size multifamily balances held in CMBS, as the FAS 167 adjustments did not affect them.) For REIT balances, MBA uses Fed data to reverse the FAS 167 inclusions and thus to report the mortgages, and not securitized assets, that REITs hold. The full corrected series are available as a part of MBA’s CREF Database. Contact [email protected] for more information.

68




Commercial/Multifamily Mortgage Delinquencies Commercial/Multifamily Delinquencies Continue to Decline in First Quarter June 1, 2015 Delinquency rates for commercial and multifamily mortgage loans continued to decline in the first quarter of 2015, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. “Commercial and multifamily mortgage performance continues to improve. Increasing property incomes, rising property values and a strong finance market are working together to push delinquency rates lower,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac. Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding. Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the first quarter were as follows:

Life company portfolios (60 or more days delinquent): 0.06 percent, a decrease of 0.02 percentage points from the fourth quarter of 2014;

Freddie Mac (60 or more days delinquent): 0.03 percent, a decrease of 0.01 percentage points fourth quarter of 2014;

Banks and thrifts (90 or more days

delinquent or in non-accrual): 1.03 percent, a decrease of 0.11

percentage points from the fourth quarter of 2014;

CMBS (30 or more days delinquent or

in REO): 5.17 percent, a decrease of 0.19 percentage points from the fourth quarter of 2014;

Fannie Mae (60 or more days

delinquent): 0.09 percent, an increase of 0.04 percentage points fourth quarter of 2014.

The analysis incorporates the same measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another. Construction and development loans are not included in the numbers presented here, but are included in many regulatory definitions of ‘commercial real estate’ despite the fact they are often backed by single-family residential development projects rather than by office buildings, apartment buildings, shopping centers, or other income-producing properties. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owner-occupied commercial properties. Differences between the delinquencies measures are detailed in Appendix A.

69




CHART 1. COMMERCIAL/MULTIFAMILY MORTGAGE DELINQUENCYRATES AMONG MAJOR INVESTOR GROUPS

Selected delinquency rates at the end of the period

NOTE: Delinquency rates shown are NOT comparable between investor groups. These rates show how performance of loans for each investor groups has varied over time, but cannot be used to compare one investor group to another.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1990

--Q

119

91 --

Q1

1992

--Q

119

93 --

Q1

1994

--Q

119

95 --

Q1

1996

--Q

119

97 --

Q1

1998

--Q

119

99 --

Q1

200

0 -

-Q

120

01 -

-Q

120

02

--Q

120

03

--Q

120

04

--Q

120

05

--Q

120

06

--Q

120

07

--Q

120

08

--Q

120

09

--Q

120

10 -

-Q

120

11 -

-Q

120

12 -

-Q

120

13 -

-Q

120

14 --

Q1

2015

--

Q1

Banks & Thrifts (90+ days)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

1990

--Q

119

91 --

Q1

1992

--Q

119

93 --

Q1

1994

--Q

119

95 --

Q1

1996

--Q

119

97 --

Q1

1998

--Q

119

99 --

Q1

200

0 -

-Q

120

01 -

-Q

120

02

--Q

120

03

--Q

120

04

--Q

120

05

--Q

120

06

--Q

120

07

--Q

120

08

--Q

120

09

--Q

120

10 -

-Q

120

11 -

-Q

120

12 -

-Q

120

13 -

-Q

120

14 --

Q1

2015

--

Q1

CMBS (30+ days and REO)

8.0% 8.0%

Sources: Wells Fargo Securities, LLC and Intex Solutions, Inc., American Council of Life Insurers, Fannie Mae, Freddie Mac, OFHEO and Federal Deposit Insurance Corporation

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1990

--Q

119

91 --

Q1

1992

--Q

119

93 --

Q1

1994

--Q

119

95 --

Q1

1996

--Q

119

97 --

Q1

1998

--Q

119

99 --

Q1

200

0 -

-Q

120

01 -

-Q

120

02

--Q

120

03

--Q

120

04

--Q

120

05

--Q

120

06

--Q

120

07

--Q

120

08

--Q

120

09

--Q

120

10 -

-Q

120

11 -

-Q

120

12 -

-Q

120

13 -

-Q

120

14 --

Q1

2015

--

Q1

Life Companies (60+ days)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1990

--Q

119

91 --

Q1

1992

--Q

119

93 --

Q1

1994

--Q

119

95 --

Q1

1996

--Q

119

97 --

Q1

1998

--Q

119

99 --

Q1

200

0 -

-Q

120

01 -

-Q

120

02

--Q

120

03

--Q

120

04

--Q

120

05

--Q

120

06

--Q

120

07

--Q

120

08

--Q

120

09

--Q

120

10 -

-Q

120

11 -

-Q

120

12 -

-Q

120

13 -

-Q

120

14 --

Q1

2015

--

Q1

Fannie Mae* (60+ days)

Freddie Mac^ (60+ days)

70




CHART 2. COMMERCIAL/MULTIFAMILY MORTGAGE DELINQUENCYRATES AMONG MAJOR INVESTOR GROUPS, 2000 - PRESENT



0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

200

0 -

-Q

1

200

1 --

Q1

200

2 --

Q1

200

3 --

Q1

200

4 --

Q1

200

5 --

Q1

200

6 --

Q1

200

7 --

Q1

200

8 --

Q1

200

9 --

Q1

2010

--

Q1

2011

--

Q1

2012

--

Q1

2013

--

Q1

2014

--Q

1

2015

--

Q1

Banks & Thrifts (90+ days)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

200

0 -

-Q

1

200

1 --

Q1

200

2 --

Q1

200

3 --

Q1

200

4 --

Q1

200

5 --

Q1

200

6 --

Q1

200

7 --

Q1

200

8 --

Q1

200

9 --

Q1

2010

--

Q1

2011

--

Q1

2012

--

Q1

2013

--

Q1

2014

--Q

1

2015

--

Q1

CMBS (30+ days and REO)

1.0% 1.0%

Sources: Wells Fargo Securities, LLC and Intex Solutions, Inc., American Council of Life Insurers, Fannie Mae, Freddie Mac, OFHEO and Federal Deposit Insurance Corporation

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

200

0 -

-Q

1

200

1 --

Q1

200

2 --

Q1

200

3 --

Q1

200

4 --

Q1

200

5 --

Q1

200

6 --

Q1

200

7 --

Q1

200

8 --

Q1

200

9 --

Q1

2010

--

Q1

2011

--

Q1

2012

--

Q1

2013

--

Q1

2014

--Q

1

2015

--

Q1

Life Companies (60+ days)

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

200

0 -

-Q

1

200

1 --

Q1

200

2 --

Q1

200

3 --

Q1

200

4 --

Q1

200

5 --

Q1

200

6 --

Q1

200

7 --

Q1

200

8 --

Q1

200

9 --

Q1

2010

--

Q1

2011

--

Q1

2012

--

Q1

2013

--

Q1

2014

--Q

1

2015

--

Q1

Fannie Mae* (60+ days)

Freddie Mac^ (60+ days)

71




COMMERCIAL/MULTIFAMILY MORTGAGE DELINQUENCY RATESAMONG MAJOR INVESTOR GROUPS


CMBS Life

Companies Fannie Mae Freddie MacBanks & Thrifts

(30+ days and REO) (60+ days) (60+ days) (60+days) (90+ days)

Year-end1997 -- Q4 0.35% 0.90% 0.37% 0.96% 1.19%1998 -- Q4 0.52% 0.48% 0.29% 0.37% 0.93%1999 -- Q4 0.50% 0.25% 0.12% 0.14% 0.71%2000 -- Q4 0.78% 0.28% 0.04% 0.04% 0.67%2001 -- Q4 1.20% 0.12% 0.33% 0.15% 0.90%2002 -- Q4 1.43% 0.28% 0.13% 0.13% 0.86%2003 -- Q4 1.68% 0.12% 0.13% 0.05% 0.78%2004 -- Q4 1.25% 0.08% 0.10% 0.06% 0.62%2005 -- Q4 0.80% 0.05% 0.27% 0.00% 0.53%2006 -- Q4 0.39% 0.02% 0.08% 0.05% 0.59%2007 -- Q4 0.39% 0.01% 0.08% 0.02% 0.85%2008 -- Q4 1.17% 0.07% 0.30% 0.01% 1.66%2009 -- Q4 5.68% 0.19% 0.63% 0.20% 3.94%2010 -- Q4 8.67% 0.19% 0.71% 0.26% 4.21%2011 -- Q4 8.51% 0.17% 0.59% 0.22% 3.58%2012 -- Q4 8.71% 0.08% 0.24% 0.19% 2.62%


2013 -- Q4 6.86% 0.05% 0.10% 0.09% 1.70%2014 -- Q4 5.36% 0.08% 0.05% 0.04% 1.14%

Quarter-end2012 -- Q1 8.79% 0.14% 0.37% 0.23% 3.45%2012 -- Q2 8.89% 0.15% 0.29% 0.27% 3.13%2012 -- Q3 8.80% 0.12% 0.28% 0.27% 2.95%2012 -- Q4 8.71% 0.08% 0.24% 0.19% 2.62%2013 -- Q1 8.50% 0.09% 0.39% 0.16% 2.43%2013 -- Q2 7.84% 0.08% 0.28% 0.09% 2.18%2013 -- Q3 7.56% 0.06% 0.18% 0.05% 1.95%2013 -- Q4 6.86% 0.05% 0.10% 0.09% 1.70%2014 -- Q1 6.15% 0.05% 0.10% 0.04% 1.58%2014 -- Q2 5.85% 0.08% 0.10% 0.02% 1.39%2014 -- Q3 5.61% 0.05% 0.09% 0.03% 1.28%2014 -- Q4 5.36% 0.08% 0.05% 0.04% 1.14%2015 -- Q1 5.17% 0.06% 0.09% 0.03% 1.03%

Sources: Wells Fargo Securities, LLC and Intex Solutions, Inc., American Council of Life Insurers, Fannie Mae, Freddie Mac, OFHEO and Federal Deposit Insurance Corporation.

Note: Differences between the delinquency measures are detailed in Appendix A.

72




APPENDIX A SOURCES & MEASURES OF DELINQUENCIES Commercial Mortgage-backed Securities (CMBS) Source: Wells Fargo Securities, LLC and Intex Solutions, Inc. The delinquency rate for CMBS loans covers loans 30+ days delinquent, including those in foreclosure, and real estate owned (REO). The CMBS rate is the only one to include REO in either the numerator or the denominator. This series includes all private-label (non-Ginnie Mae, Fannie Mae or Freddie Mac issued) deals that are currently outstanding, including both fixed- and floating-rate deals. In reports released prior to Q3 2011, this series included only deals issued prior to 2009. Beginning with the Q3 2011 release all deals are included regardless of issue date. Life Companies Source: American Council of Life Insurers The delinquency rate for life insurance company loans covers loans 60+ days delinquent, including those in foreclosure, and does not include real estate owned (REO) in either the numerator or the denominator. Fannie Mae Source: Fannie Mae Monthly Volume Summary and Office of Federal Housing Enterprise Oversight Annual Reports to Congress The delinquency rate for multifamily loans either held in portfolio or securitized and guaranteed by the company covers loans 60+ days delinquent, including those in foreclosure, and does not include real estate owned (REO) in either the numerator or the denominator. The company was unable to provide December delinquency figures for the years 2000 to 2004, so the fourth quarter numbers presented for those years are November, rather December, figures. In January 2011, Fannie Mae revised its 2010 monthly multifamily delinquency rates for all periods presented to exclude multifamily borrowers who have entered into a forbearance agreement and are abiding by the terms of the agreement, but had been

previously included in the multifamily delinquency rates due to an error. Freddie Mac Source: Freddie Mac Monthly Volume Summary and Office of Federal Housing Enterprise Oversight Annual Reports to Congress The delinquency rate for multifamily loans either held in portfolio or securitized and guaranteed by the company covers loans 60+ days delinquent, including those in foreclosure, and does not include real estate owned (REO) in either the numerator or the denominator. Freddie Mac notes that their delinquency rate “[e]xcludes mortgage loans whose original contractual terms have been modified under an agreement with the borrower as long as the borrower complies with the modified contractual terms.” As an example, after Hurricane Katrina, Freddie Mac modified a number of loans affected by the storms. In May 2010, Freddie Mac returned to reporting multifamily delinquencies as those loans 60+ days delinquent. FDIC-insured Banks & Thrifts Source: Federal Deposit Insurance Corporation The delinquency rate for FDIC banks and thrifts covers loans 90+ days delinquent, including those in foreclosure and in non-accrual status, and does not include real estate owned (REO) in either the numerator or the denominator. The universe of loans covered by this series also includes a large number of “owner-occupied” commercial loans – loans supported by the income of the resident business rather than by rent and lease payments. In a 2007 analysis by MBA of the ten banks with the largest commercial mortgage portfolios, approximately half, in dollar volume, of their commercial (non-multifamily) loan portfolio was comprised of these “owner-occupied” properties. Data are available for life companies, FDIC-insured banks and thirfts, Fannie Mae and Freddie Mac since 1990 and CMBS since 1997.

73




COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS)OUTSTANDING

Billions of Dollars


Percent change

U.S. CMBS OUTSTANDING

1998 77.98$ 97.11$ 107.97$ 129.60$ 1999 144.62$ 154.50$ 164.11$ 175.54$ 66.64$ 85% 15.02$ 11.6%2000 180.59$ 188.90$ 197.64$ 209.43$ 35.97$ 25% 5.05$ 2.9%2001 216.32$ 230.24$ 238.90$ 258.04$ 35.73$ 20% 6.89$ 3.3%2002 261.16$ 269.10$ 275.95$ 288.57$ 44.84$ 21% 3.12$ 1.2%2003 292.00$ 308.09$ 320.32$ 335.14$ 30.83$ 12% 3.43$ 1.2%2004 345.86$ 360.86$ 373.65$ 393.29$ 53.86$ 18% 10.71$ 3.2%2005 413.05$ 441.38$ 463.94$ 509.86$ 67.19$ 19% 19.76$ 5.0%2006 541.10$ 573.55$ 603.33$ 663.31$ 128.05$ 31% 31.24$ 6.1%2007 707.40$ 755.51$ 811.06$ 830.16$ 166.29$ 31% 44.09$ 6.6%2008 822.64$ 812.05$ 798.10$ 787.32$ 115.24$ 16% (7.51)$ -0.9%2009 778.26$ 765.82$ 754.77$ 743.97$ (44.39)$ -5% (9.07)$ -1.2%2010 731.48$ 715.83$ 700.43$ 693.85$ (46.78)$ -6% (12.49)$ -1.7%2011 682.55$ 666.46$ 652.78$ 639.86$ (48.93)$ -7% (11.29)$ -1.6%2012 623.66$ 610.20$ 598.60$ 596.12$ (58.90)$ -9% (16.20)$ -2.5%2013 597.70$ 594.73$ 585.40$ 580.58$ (25.96)$ -4% 1.57$ 0.3%2014 573.99$ 576.01$ 580.95$ 581.72$ (23.71)$ -4% (6.58)$ -1.1%2015 582.50$ 8.51$ 1% 0.78$ 0.1%

Source: Wells Fargo Securities, LLC, and Intex Solutions, Inc.

Q1 Year-Over-Year Change Q4-to-Q1 Change

In reports released prior to Q3 2011, this series included only deals issued prior to 2009. Beginning with the Q3 2011 release all deals are included regardless of issue date.

74




COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS) OUTSTANDING

Billions of Dollars


$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

75




COMMERCIAL MORTGAGE-BACKED SECURITIES (CMBS)MARKET COMPOSITION

Composition of CMBS Outstanding, as of March 31, 2015

Total CMBS Outstanding 582.5$ billion

By Property Types:Office 29.0%Multifamily 11.8%Retail 30.9%Industrial 4.6%Hotel 13.8%Self-Storage 2.1%Healthcare 0.3%Other 7.6%

By Amortization:Fully Amortizing 29.6%All Interest-Only (IO) 70.4% Full Term IO 38.8% Part Term IO 31.7%

By Percent Defeased 4.9%

By Delinquency:Current 94.83%30-day delinquent 0.23%60-day delinquent 0.13%90+day delinquent 0.99%Foreclosure/REO 3.82%


Office, 29.0%

Multifamily, 11.8%

Retail, 30.9%

Industrial, 4.6%

Hotel, 13.8%

Self-Storage, 2.1%

Healthcare, 0.3% Other, 7.6%

Fully Amortizing,

29.6%

Full Term IO, 38.8%

Part Term IO, 31.7%

76




CMBS SPREADSCOMMERCIAL MORTGAGE BACKED SECURITIES (CMBS)NEW ISSUE SPREADS TO SWAP RATES(in Basis Points)

Source: JP Morgan Securities

AAA CMBS SPREADS(in Basis Points)


0

200

400

600

800

1,000

1,200

1,400

1,600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

New Super Senior AAA Legacy Super Senior AAA

0

100

200

300

400

500

600

700

Sep-

11

Nov

-11

Jan-

12

Mar

-12

May

-12

Jul-

12

Sep-

12

Nov

-12

Jan-

13

Mar

-13

May

-13

Jul-

13

Sep-

13

Nov

-13

Jan-

14

Mar

-14

May

-14

Jul-

14

Sep-

14

Nov

-14

Jan-

15

Mar

-15

May

-15

Super Senior AAA AA A BBB-

77




CMBS AND OTHER SPREADSCommercial Mortgage Backed Securities (CMBS) and selected other CRE mortgage bondsSpreads to Swap Rates

(in Basis Points)

New Issue CMBS

Super Senior AAA AA A BBB-

Legacy Super Senior AAA 10/9.5 DUS

10yr Freddie K A1

End of Q2 2013 120 205 265 445 157 85 43End of Q3 2013 93 170 240 405 159 75 57End of Q4 2013 90 165 220 370 168 65 55End of Q1 2014 87 144 188 360 95 53 39End of Q2 2014 77 135 175 312 85 35 28End of Q3 2014 84 141 185 339 84 47 34End of Q4 2014 88 141 203 358 85 58 38

7-Nov-14 86 152 197 338 85 51 3714-Nov-14 85 151 195 334 85 51 3721-Nov-14 82 146 192 335 84 53 3828-Nov-14 83 146 195 340 84 54 385-Dec-14 83 146 199 338 84 54 3812-Dec-14 85 148 201 340 84 55 3819-Dec-14 88 141 203 358 85 58 3826-Dec-14 88 141 203 358 85 58 382-Jan-15 88 141 203 358 85 58 389-Jan-15 88 141 203 358 85 58 3816-Jan-15 92 145 205 375 85 59 4023-Jan-15 93 153 210 375 85 57 4030-Jan-15 91 155 208 380 85 56 406-Feb-15 88 152 204 365 85 53 3913-Feb-15 87 149 200 360 85 53 3820-Feb-15 86 145 200 355 85 53 3027-Feb-15 84 145 200 350 85 52 306-Mar-15 82 139 195 330 85 52 3013-Mar-15 83 141 197 335 85 52 3020-Mar-15 84 145 198 340 85 52 3027-Mar-15 85 145 200 345 85 54 303-Apr-15 89 150 210 355 85 54 3010-Apr-15 88 150 205 355 85 53 2917-Apr-15 88 147 202 350 85 56 2924-Apr-15 87 144 200 347 85 56 291-May-15 85 145 202 352 85 56 298-May-15 81 145 205 344 85 56 2915-May-15 86 160 210 355 85 56 2922-May-15 85 160 210 355 85 56 2929-May-15 86 160 210 355 85 57 305-Jun-15 88 162 213 370 85 58 32


78




5. Commercial/Multifamily Mortgage Servicing Volumes Year-End 2014 The Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers’ volumes as of December 31, 2014. At the top of the list of firms is Wells Fargo with $474.4 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $396.8 billion, Berkadia Commercial Mortgage LLC with $236.3 billion, KeyBank National Association with $174.4 billion, and GEMSA Loan Services, L.P. with $101.3 billion. Wells Fargo, PNC/Midland, KeyBank, and Berkadia are the largest master and primary servicers of commercial/multifamily loans in U.S. commercial mortgage backed securities (CMBS), collateralized debt obligations (CDO) and other asset-backed securities (ABS); Prudential Asset Resources, PNC/Midland, GEMSA, and MetLife are the largest servicers for life companies; PNC/Midland, Wells Fargo, Walker & Dunlop, LLC, and Berkeley Point Capital, LLC are the largest Fannie Mae servicers; Wells Fargo, PNC/Midland, KeyBank, and GEMSA are the largest Freddie Mac servicers. PNC/Midland ranks as the top master and primary servicer of commercial bank and savings institution loans; of loans for the credit companies, pension funds, real estate investment trusts (REITs), and investment funds; and of loans for FHA and Ginnie Mae. Wells Fargo is the top servicer for loans held in warehouse facilities. Berkadia is the top for other investor type loans. A primary servicer is generally responsible for collecting loan payments from borrowers, performing property inspections and other property-related activities. A master servicer is typically responsible for collecting cash and data from primary servicers and then providing that cash and data, through trustees, to investors. Unless otherwise noted, MBA tabulations that combine

different roles do not double-count loans for which a single servicer performs multiple roles. The tabulations can and do double-count across servicers loans for which multiple servicers each fulfill a role. Specific breakouts in the MBA survey include: • Total U.S. Master and Primary

Servicing Volume • U.S. Commercial Mortgage-backed

Securities, Collateralized Debt Obligations and Other Asset-Backed Securities Master and Primary Servicing Volume

• U.S. Commercial Banks and Savings Institution Volume

• U.S. Credit Company, Pension Funds, REITs, and Investment Funds Volume

• Fannie Mae Servicing Volume • Freddie Mac Servicing Volume • Federal Housing Administration

(FHA) Servicing Volume • U.S. Life Company Servicing Volume • U.S. Warehouse Volume • U.S. Other Investor Volume • U.S. CMBS Named Special Servicing

Volume • U.S. Named Special Servicing Volumes

Across All Investor Groups • Total Non-U.S. Master and Primary

Servicing Volume MBA also asked firms to provide information about loans on which they are the named special servicer – that is, where the firm stands ready to service the loan should special problems develop, such as delinquency. The largest named special servicers were LNR Partners LLC, PNC/Midland, C-III Asset Management, CWCapital Asset Management LLC, and Prudential. LNR Partners is the largest special servicer for CMBS loans. The MBA survey also collected servicing volumes for loans on commercial/multifamily properties located outside the United States.

79




Situs Asset Management LLC ranks as the largest master and primary servicer of non-U.S. commercial/multifamily mortgages, followed by GEMSA.

80




Rank CompanyAmount

($ millions)Numberof loans

Year-End Survey of Commercial/Multifamily Mortgage Servicing Volumes

Total Primary & Master Servicing

TOTAL LOANS

Total US Collateral

as of December 31, 2014

Avg. Loan Size ($m)

Wells Fargo Bank NA1 33,590$474,377 $14.1

PNC Real Estate / Midland Loan Services2 32,704$396,785 $12.1Berkadia Commercial Mortgage LLC3 25,954$236,270 $9.1

KeyBank National Association4 16,747$174,394 $10.4

GEMSA Loan Services, L.P.5 5,768$101,324 $17.6

Prudential Asset Resources6 5,099$78,940 $15.5NorthMarq Capital7 5,855$45,668 $7.8

Walker & Dunlop, LLC8 4,553$44,037 $9.7

HFF, LP9 2,468$39,328 $15.9MetLife10 557$33,804 $60.7

Situs11 1,162$31,168 $26.8

Berkeley Point Capital, LLC12 1,945$30,757 $15.8Grandbridge Real Estate Capital LLC13 4,887$28,631 $5.9

Northwestern Mutual14 676$27,493 $40.7

Cohen Financial15 3,662$25,812 $7.0

Trimont Real Estate Advisors, Inc.16 1,651$25,683 $15.6New York Life Investors17 610$24,663 $40.4

Principal Global Investors18 2,528$22,309 $8.8

C-III Asset Management, LLC19 2,268$17,038 $7.5Red Mortgage Capital, LLC20 1,929$16,431 $8.5

Greystone21 3,250$14,955 $4.6

HSBC Bank USA NA22 778$14,354 $18.5

Manulife Financial / John Hancock 23 1,139$13,989 $12.3M&T Realty Capital Corporation24 1,021$11,803 $11.6

Q10 Capital LLC25 3,609$11,081 $3.1

Hunt Mortgage Group LLC26 1,805$10,901 $6.0Nationwide Life Insurance Company27 1,114$10,022 $9.0

Voya Investment Management LLC28 1,188$9,972 $8.4

Pacific Life Insurance Company29 635$9,567 $15.1

Oak Grove Capital30 1,305$9,555 $7.3Aegon Usa Realty Advisors, LLC31 1,197$8,861 $7.4

StanCorp Mortgage Investors, LLC32 6,507$8,699 $1.3

Newmark Realty Capital, Inc. - SAM Member33 1,016$8,263 $8.1Bellwether Enterprise Real Estate Capital LLC34 1,760$8,025 $4.6

Arbor Commercial Mortgage, LLC35 1,786$7,683 $4.3

Lincoln National Corporation36 1,204$7,559 $6.3

Thrivent Financial37 2,918$7,384 $2.5Genworth38 1,605$6,312 $3.9

State Farm Life Insurance Company39 569$6,093 $10.7

Athene Life & Annuity (formerly Aviva USA)40 935$6,057 $6.5National Cooperative Bank, NA41 3,636$5,756 $1.6

Heartland Bank42 838$5,549 $6.6

AmeriSphere Multifamily Finance, LLC43 540$5,517 $10.2

Protective Life Ins. Co.44 1,816$5,149 $2.8

81




Rank CompanyAmount




TOTAL LOANS

Total US Collateral


Avg. Loan Size ($m)

Pacific Southwest Realty Services - SAM Member45 971$4,971 $5.1

Jones Lang LaSalle Operations, LLC46 250$4,903 $19.6Lancaster Pollard Mortgage Company47 855$4,400 $5.1

Oppenheimer Multifamily Housing & Healthcare Finance, Inc.48 505$4,270 $8.5

Symetra49 1,676$4,135 $2.5

ACRE Capital LLC50 964$4,031 $4.2Bank of America, N.A.51 1,189$3,990 $3.4

P/R Mortgage & Investment Corp. 52 713$3,620 $5.1

Dougherty Mortgage LLC53 437$3,367 $7.7Essex Financial Services, LLC54 637$3,364 $5.3

ColumbiaNational Real Estate Finance, LLC55 330$2,886 $8.7

RiverSource Life Insurance Company56 934$2,729 $2.9Barry S. Slatt Mortgage Company57 1,184$2,631 $2.2

Capital Funding, LLC58 434$2,607 $6.0

American Equity Investment Life Insurance Company59 934$2,485 $2.7

40|86 Mortgage Capital60 334$2,002 $6.0OneAmerica Financial Partners61 547$1,895 $3.5

Bernard Financial Servicing Group - SAM Member62 338$1,884 $5.6

NBS Financial Services - SAM Member63 379$1,777 $4.7Sunrise Mortgage & Investment Co64 933$1,762 $1.9

Medalist Capital, Inc.65 379$1,714 $4.5

Capital Advisors, Inc.66 419$1,697 $4.1

BNY Mellon67 148$1,503 $10.2CMFG Life Insurance Company68 348$1,460 $4.2

George Elkins Mortgage Banking Company69 448$1,446 $3.2

Gershman Mortgage70 194$1,435 $7.4Centennial Mortgage, Inc. 71 183$1,396 $7.6

Capital Crossing Servicing Company72 1,135$1,369 $1.2

Goedecke & Co., LLC73 142$1,279 $9.0

Colliers International New England, LLC - SAM Member74 106$1,219 $11.5Keystone Mortgage Corporation75 333$1,174 $3.5

CBRE HMF, Inc76 74$986 $13.3

Thomas D Wood and Company - SAM Member77 466$904 $1.9Intervest Mortgage Investment Company78 305$893 $2.9

American Real Estate Capital Company, LLC79 39$891 $22.8

Morris, Smith and Feyh, Incorporated80 162$867 $5.4

Glacier Real Estate Finance, Inc.81 210$693 $3.3Colliers International - Atlanta - SAM Member82 130$623 $4.8

Great-West Financial83 74$552 $7.5

Guardian Life Insurance Company of America84 65$544 $8.4First Housing Development Corporation of Florida85 92$493 $5.4

Bonneville Multifamily Capital86 205$381 $1.9

Rockhall Funding Corp.87 32$358 $11.2

Pace Financial Group88 43$358 $8.3

82




Rank CompanyAmount




TOTAL LOANS

Total US Collateral


Avg. Loan Size ($m)

PPM Finance89 17$357 $21.0

Holliday American Mortgage - SAM Member90 181$346 $1.9Eustis Commercial Mortgage Corporation - SAM Member91 75$323 $4.3

Ziegler Financing Corporation92 42$317 $7.5

Western Capital Realty Advisors - SAM Member93 50$305 $6.1

Innovative Capital Advisors, LLC94 224$265 $1.2RoundPoint Mortgage Servicing Corporation95 1,315$231 $0.2

Directed Capital96 168$214 $1.3

Boston Mutual Life Insurance Company97 104$124 $1.2One Nevada Credit Union98 55$54 $1.0

Ameritas Life Insurance Corp.99 22$43 $2.0

Strategic Asset Services100 1$30 $30.2Allstate Investments101 3$16 $5.3

83




Rank CompanyAmount




CMBS, CDO or other ABS Loans

Total US Collateral


Avg. Loan Size ($m)


PNC Real Estate / Midland Loan Services2 9,756$138,660 $14.2KeyBank National Association3 7,665$105,794 $13.8

Berkadia Commercial Mortgage LLC4 6,515$54,450 $8.4

HFF, LP5 1,015$17,470 $17.2

Principal Global Investors6 920$8,367 $9.1Prudential Asset Resources7 714$8,171 $11.4

NorthMarq Capital8 624$5,955 $9.5

Situs9 224$5,063 $22.6Berkeley Point Capital, LLC10 230$4,735 $20.6

Grandbridge Real Estate Capital LLC11 649$4,120 $6.3

GEMSA Loan Services, L.P.12 354$1,987 $5.6National Cooperative Bank, NA13 651$1,655 $2.5

Cohen Financial14 326$1,565 $4.8

BNY Mellon15 148$1,503 $10.2

Nationwide Life Insurance Company16 161$1,462 $9.1Bernard Financial Servicing Group - SAM Member17 139$1,322 $9.5

Newmark Realty Capital, Inc. - SAM Member18 98$1,280 $13.1

Pacific Life Insurance Company19 373$979 $2.6C-III Asset Management, LLC20 50$725 $14.5

ColumbiaNational Real Estate Finance, LLC21 69$684 $9.9

Pacific Southwest Realty Services - SAM Member22 88$563 $6.4

Jones Lang LaSalle Operations, LLC23 13$484 $37.2Protective Life Ins. Co.24 381$455 $1.2

Trimont Real Estate Advisors, Inc.25 24$396 $16.5

George Elkins Mortgage Banking Company26 20$382 $19.1Walker & Dunlop, LLC27 34$356 $10.5

Goedecke & Co., LLC28 26$348 $13.4

Q10 Capital LLC29 49$322 $6.6

Bellwether Enterprise Real Estate Capital LLC30 31$315 $10.2Barry S. Slatt Mortgage Company31 204$279 $1.4


Capital Crossing Servicing Company33 216$265 $1.2Arbor Commercial Mortgage, LLC34 5$47 $9.4



NBS Financial Services - SAM Member37 2$19 $9.5Manulife Financial / John Hancock 38 8$18 $2.3

Sunrise Mortgage & Investment Co39 2$18 $9.0

Eustis Commercial Mortgage Corporation - SAM Member40 2$13 $6.7Holliday American Mortgage - SAM Member41 2$7 $3.5

Bank of America, N.A.42 1$0 $0.1

84




Rank CompanyAmount




Commercial Bank/Savings Institution Loans

Total US Collateral


Avg. Loan Size ($m)

PNC Real Estate / Midland Loan Services1 4,251$40,892 $9.6

KeyBank National Association2 5,999$17,528 $2.9HSBC Bank USA NA3 672$13,408 $20.0

Trimont Real Estate Advisors, Inc.4 380$11,268 $29.7

GEMSA Loan Services, L.P.5 137$2,649 $19.3

Berkadia Commercial Mortgage LLC6 94$1,213 $12.9Bank of America, N.A.7 1,092$941 $0.9

National Cooperative Bank, NA8 1,682$806 $0.5

Grandbridge Real Estate Capital LLC9 83$802 $9.7HFF, LP10 17$602 $35.4

Wells Fargo Bank NA11 11$530 $48.2

P/R Mortgage & Investment Corp. 12 71$189 $2.7State Farm Life Insurance Company13 10$118 $11.8

Capital Funding, LLC14 9$103 $11.4

Principal Global Investors15 8$95 $11.9

Q10 Capital LLC16 3$56 $18.7Situs17 5$52 $10.4


RoundPoint Mortgage Servicing Corporation19 156$16 $0.1Berkeley Point Capital, LLC20 2$12 $6.0

Keystone Mortgage Corporation21 5$4 $0.8

George Elkins Mortgage Banking Company22 1$1 $1.2

85




Rank CompanyAmount




Credit Company, Pension Funds, REITs, Investment Funds Loans

Total US Collateral


Avg. Loan Size ($m)


Situs2 852$25,645 $30.1GEMSA Loan Services, L.P.3 1,304$19,767 $15.2

Trimont Real Estate Advisors, Inc.4 1,099$10,275 $9.3

Cohen Financial5 1,416$4,056 $2.9

C-III Asset Management, LLC6 151$3,414 $22.6Prudential Asset Resources7 272$1,445 $5.3

Capital Crossing Servicing Company8 919$1,104 $1.2

NorthMarq Capital9 108$927 $8.6HFF, LP10 53$768 $14.5


New York Life Investors12 5$301 $60.2Directed Capital13 168$214 $1.3

Keystone Mortgage Corporation14 6$73 $12.2

Q10 Capital LLC15 43$66 $1.5

Arbor Commercial Mortgage, LLC16 24$14 $0.6Barry S. Slatt Mortgage Company17 1$3 $2.6

86




Rank CompanyAmount




Fannie Mae Loans

Total US Collateral


Avg. Loan Size ($m)


Wells Fargo Bank NA2 4,635$28,081 $6.1Walker & Dunlop, LLC3 2,499$20,521 $8.2

Berkeley Point Capital, LLC4 1,051$14,417 $13.7

Berkadia Commercial Mortgage LLC5 876$11,717 $13.4

Prudential Asset Resources6 618$11,494 $18.6GEMSA Loan Services, L.P.7 525$9,747 $18.6

Greystone8 2,633$8,798 $3.3

M&T Realty Capital Corporation9 779$8,640 $11.1Red Mortgage Capital, LLC10 776$7,934 $10.2

Arbor Commercial Mortgage, LLC11 1,634$6,885 $4.2

C-III Asset Management, LLC12 1,373$6,864 $5.0Hunt Mortgage Group LLC13 1,348$6,460 $4.8

KeyBank National Association14 457$5,364 $11.7

Grandbridge Real Estate Capital LLC15 585$5,092 $8.7

Oak Grove Capital16 808$5,084 $6.3NorthMarq Capital17 526$4,978 $9.5

AmeriSphere Multifamily Finance, LLC18 472$4,877 $10.3

ACRE Capital LLC19 915$3,317 $3.6National Cooperative Bank, NA20 1,286$3,253 $2.5


Dougherty Mortgage LLC22 205$894 $4.4

Bellwether Enterprise Real Estate Capital LLC23 223$673 $3.0Lancaster Pollard Mortgage Company24 22$90 $4.1

RoundPoint Mortgage Servicing Corporation25 365$67 $0.2

George Elkins Mortgage Banking Company26 3$64 $21.2Bank of America, N.A.27 18$37 $2.1

Colliers International - Atlanta - SAM Member28 3$31 $10.3

Eustis Commercial Mortgage Corporation - SAM Member29 5$26 $5.3

Q10 Capital LLC30 4$21 $5.3Bernard Financial Servicing Group - SAM Member31 3$18 $6.0

P/R Mortgage & Investment Corp. 32 14$15 $1.1

Principal Global Investors33 4$5 $1.3Lincoln National Corporation34 5$4 $0.9

87




Rank CompanyAmount




Freddie Mac (including CME & Non-CME) Loans

Total US Collateral


Avg. Loan Size ($m)


PNC Real Estate / Midland Loan Services2 2,118$37,302 $17.6KeyBank National Association3 2,111$35,450 $16.8

GEMSA Loan Services, L.P.4 1,457$26,972 $18.5


Walker & Dunlop, LLC6 778$12,917 $16.6NorthMarq Capital7 1,203$12,245 $10.2

Berkeley Point Capital, LLC8 544$10,344 $19.0

C-III Asset Management, LLC9 664$5,724 $8.6Grandbridge Real Estate Capital LLC10 419$5,167 $12.3

Prudential Asset Resources11 285$4,416 $15.5

Hunt Mortgage Group LLC12 394$3,909 $9.9Jones Lang LaSalle Operations, LLC13 217$3,739 $17.2

HFF, LP14 181$3,029 $16.7

Oak Grove Capital15 218$2,164 $9.9

M&T Realty Capital Corporation16 127$1,741 $13.7HSBC Bank USA NA17 106$946 $8.9

Bellwether Enterprise Real Estate Capital LLC18 114$813 $7.1

ACRE Capital LLC19 35$411 $11.7Greystone20 21$241 $11.5

Cohen Financial21 24$197 $8.2

Arbor Commercial Mortgage, LLC22 6$65 $10.8

Colliers International - Atlanta - SAM Member23 5$53 $10.6Q10 Capital LLC24 9$40 $4.4

RoundPoint Mortgage Servicing Corporation25 15$4 $0.3

Manulife Financial / John Hancock 26 1$1 $1.0

88




Rank CompanyAmount




Memo: Freddie Mac CME/K-Deals Loans included in Freddie Mac

Total US Collateral


Avg. Loan Size ($m)


KeyBank National Association2 1,924$32,980 $17.1PNC Real Estate / Midland Loan Services3 1,201$24,811 $20.7

GEMSA Loan Services, L.P.4 980$19,810 $20.2

Berkadia Commercial Mortgage LLC5 694$10,686 $15.4

Walker & Dunlop, LLC6 466$8,674 $18.6NorthMarq Capital7 476$6,504 $13.7

Berkeley Point Capital, LLC8 226$5,127 $22.7

Grandbridge Real Estate Capital LLC9 284$3,835 $13.5Jones Lang LaSalle Operations, LLC10 148$2,983 $20.2


C-III Asset Management, LLC12 121$1,852 $15.3Oak Grove Capital13 66$843 $12.8

HSBC Bank USA NA14 34$595 $17.5

M&T Realty Capital Corporation15 23$499 $21.7

Greystone16 3$72 $24.0Cohen Financial17 1$5 $4.6

89




Rank CompanyAmount




FHA & Ginnie Mae Loans

Total US Collateral


Avg. Loan Size ($m)


Prudential Asset Resources2 645$9,294 $14.4Berkadia Commercial Mortgage LLC3 1,671$8,412 $5.0

Red Mortgage Capital, LLC4 1,134$8,383 $7.4

Wells Fargo Bank NA5 971$7,861 $8.1

Walker & Dunlop, LLC6 707$5,829 $8.2Heartland Bank7 838$5,549 $6.6

Greystone8 484$4,859 $10.0

Oppenheimer Multifamily Housing & Healthcare Finance, Inc.9 505$4,270 $8.5Lancaster Pollard Mortgage Company10 747$4,178 $5.6

P/R Mortgage & Investment Corp. 11 590$3,378 $5.7

Dougherty Mortgage LLC12 232$2,473 $10.7Capital Funding, LLC13 398$2,267 $5.7

Oak Grove Capital14 267$2,148 $8.0

KeyBank National Association15 228$2,144 $9.4

Gershman Mortgage16 194$1,435 $7.4Centennial Mortgage, Inc. 17 183$1,396 $7.6

M&T Realty Capital Corporation18 98$1,263 $12.9

Berkeley Point Capital, LLC19 117$1,225 $10.5CBRE HMF, Inc20 74$986 $13.3


Grandbridge Real Estate Capital LLC22 140$802 $5.7

Cohen Financial23 159$761 $4.8AmeriSphere Multifamily Finance, LLC24 68$640 $9.4

NorthMarq Capital25 68$639 $9.4

First Housing Development Corporation of Florida26 78$478 $6.1Principal Global Investors27 22$420 $19.1

ColumbiaNational Real Estate Finance, LLC28 26$418 $16.1

Bonneville Multifamily Capital29 205$381 $1.9

Rockhall Funding Corp.30 32$358 $11.2Ziegler Financing Corporation31 42$317 $7.5

ACRE Capital LLC32 14$304 $21.7

Arbor Commercial Mortgage, LLC33 38$280 $7.4Hunt Mortgage Group LLC34 33$221 $6.7

Colliers International - Atlanta - SAM Member35 1$16 $15.9


RoundPoint Mortgage Servicing Corporation37 42$10 $0.2National Cooperative Bank, NA38 1$3 $3.4

90




Rank CompanyAmount




Life Insurance Companies Loans

Total US Collateral


Avg. Loan Size ($m)

Prudential Asset Resources1 2,544$44,081 $17.3

PNC Real Estate / Midland Loan Services2 3,036$43,453 $14.3GEMSA Loan Services, L.P.3 1,925$39,220 $20.4

MetLife4 557$33,804 $60.7

Northwestern Mutual5 676$27,493 $40.7

New York Life Investors6 603$24,302 $40.3NorthMarq Capital7 3,326$20,924 $6.3

HFF, LP8 1,202$17,459 $14.5

Manulife Financial / John Hancock 9 1,130$13,970 $12.4Principal Global Investors10 1,573$13,419 $8.5

Grandbridge Real Estate Capital LLC11 2,820$11,726 $4.2

Q10 Capital LLC12 3,420$10,544 $3.1Cohen Financial13 1,462$10,425 $7.1

Voya Investment Management LLC14 1,188$9,972 $8.4

Aegon Usa Realty Advisors, LLC15 1,197$8,861 $7.4

StanCorp Mortgage Investors, LLC16 6,507$8,699 $1.3Nationwide Life Insurance Company17 953$8,560 $9.0


Berkadia Commercial Mortgage LLC19 1,357$7,849 $5.8Lincoln National Corporation20 1,199$7,555 $6.3

Thrivent Financial21 2,918$7,384 $2.5

Newmark Realty Capital, Inc. - SAM Member22 918$6,983 $7.6

Genworth23 1,605$6,312 $3.9Athene Life & Annuity (formerly Aviva USA)24 935$6,057 $6.5

State Farm Life Insurance Company25 559$5,975 $10.7

Bellwether Enterprise Real Estate Capital LLC26 1,118$4,916 $4.4Protective Life Ins. Co.27 1,435$4,694 $3.3

Pacific Southwest Realty Services - SAM Member28 880$4,399 $5.0

Symetra29 1,676$4,135 $2.5

Walker & Dunlop, LLC30 505$4,104 $8.1Trimont Real Estate Advisors, Inc.31 148$3,744 $25.3

Essex Financial Services, LLC32 637$3,364 $5.3

RiverSource Life Insurance Company33 934$2,729 $2.9American Equity Investment Life Insurance Company34 934$2,485 $2.7

Barry S. Slatt Mortgage Company35 967$2,319 $2.4

40|86 Mortgage Capital36 334$2,002 $6.0

OneAmerica Financial Partners37 547$1,895 $3.5NBS Financial Services - SAM Member38 377$1,758 $4.7

Sunrise Mortgage & Investment Co39 931$1,744 $1.9

Medalist Capital, Inc.40 379$1,714 $4.5Capital Advisors, Inc.41 419$1,697 $4.1

CMFG Life Insurance Company42 348$1,460 $4.2

ColumbiaNational Real Estate Finance, LLC43 160$1,263 $7.9

Colliers International New England, LLC - SAM Member44 106$1,219 $11.5

91




Rank CompanyAmount




Life Insurance Companies Loans

Total US Collateral


Avg. Loan Size ($m)

Keystone Mortgage Corporation45 322$1,097 $3.4

KeyBank National Association46 51$1,016 $19.9George Elkins Mortgage Banking Company47 424$1,000 $2.4

Goedecke & Co., LLC48 116$931 $8.0

Thomas D Wood and Company - SAM Member49 466$904 $1.9

Intervest Mortgage Investment Company50 305$893 $2.9American Real Estate Capital Company, LLC51 39$891 $22.8


Glacier Real Estate Finance, Inc.53 210$693 $3.3Jones Lang LaSalle Operations, LLC54 20$680 $34.0

Great-West Financial55 74$552 $7.5

Guardian Life Insurance Company of America56 65$544 $8.4Colliers International - Atlanta - SAM Member57 121$523 $4.3

Bernard Financial Servicing Group - SAM Member58 190$457 $2.4

Situs59 81$408 $5.0

PPM Finance60 17$357 $21.0Holliday American Mortgage - SAM Member61 179$339 $1.9

Eustis Commercial Mortgage Corporation - SAM Member62 68$283 $4.2

Innovative Capital Advisors, LLC63 224$265 $1.2Western Capital Realty Advisors - SAM Member64 43$225 $5.2


Boston Mutual Life Insurance Company66 104$124 $1.2

Pace Financial Group67 14$69 $4.9Ameritas Life Insurance Corp.68 22$43 $2.0

Berkeley Point Capital, LLC69 1$25 $25.0

Allstate Investments70 3$16 $5.3

92




Rank CompanyAmount




Loans Held in Warehouse (not elsewhere classified)

Total US Collateral


Avg. Loan Size ($m)


PNC Real Estate / Midland Loan Services2 312$8,796 $28.2KeyBank National Association3 236$7,097 $30.1

Bank of America, N.A.4 78$3,012 $38.6

GEMSA Loan Services, L.P.5 66$982 $14.9

Berkadia Commercial Mortgage LLC6 65$792 $12.2Hunt Mortgage Group LLC7 30$311 $10.4

C-III Asset Management, LLC8 30$311 $10.4

Walker & Dunlop, LLC9 14$275 $19.6Arbor Commercial Mortgage, LLC10 34$212 $6.2

Pacific Life Insurance Company11 109$179 $1.6

Oak Grove Capital12 12$159 $13.3RoundPoint Mortgage Servicing Corporation13 737$134 $0.2

Bernard Financial Servicing Group - SAM Member14 6$87 $14.5

National Cooperative Bank, NA15 16$39 $2.4

Prudential Asset Resources16 21$38 $1.8Barry S. Slatt Mortgage Company17 12$31 $2.6

Strategic Asset Services18 1$30 $30.2

P/R Mortgage & Investment Corp. 19 4$27 $6.8Pacific Southwest Realty Services - SAM Member20 3$9 $3.0

Lancaster Pollard Mortgage Company21 4$8 $2.0

Principal Global Investors22 1$3 $3.0

93




Rank CompanyAmount




Other Loans

Total US Collateral


Avg. Loan Size ($m)


PNC Real Estate / Midland Loan Services2 868$40,871 $47.1Wells Fargo Bank NA3 1,714$10,464 $6.1


Greystone5 112$1,057 $9.4

Grandbridge Real Estate Capital LLC6 191$922 $4.8ColumbiaNational Real Estate Finance, LLC7 75$521 $6.9


Capital Funding, LLC9 27$237 $8.8Arbor Commercial Mortgage, LLC10 45$181 $4.0

M&T Realty Capital Corporation11 17$159 $9.4

Lancaster Pollard Mortgage Company12 82$125 $1.5Red Mortgage Capital, LLC13 19$113 $6.0

New York Life Investors14 2$60 $30.2

One Nevada Credit Union15 55$54 $1.0

Walker & Dunlop, LLC16 16$35 $2.2Q10 Capital LLC17 81$32 $0.4

First Housing Development Corporation of Florida18 14$15 $1.1

P/R Mortgage & Investment Corp. 19 34$11 $0.3Pacific Life Insurance Company20 7$8 $1.1

94




Rank CompanyAmount



Total Named Special Servicing

CMBS, CDO or other ABS Loans

Total US Collateral


Avg. Loan Size ($m)

LNR Partners, LLC1 10,295$134,860 $13.1

C-III Asset Management, LLC2 9,940$105,672 $10.6CWCapital Asset Management LLC3 7,157$100,640 $14.1


Wells Fargo Bank NA5 550$35,368 $64.3

KeyBank National Association6 1,856$21,956 $11.8Strategic Asset Services7 158$16,631 $105.3

NorthStar8 249$5,915 $23.8

Aegon Usa Realty Advisors, LLC9 26$4,023 $154.7Arbor Commercial Mortgage, LLC10 233$1,829 $7.8


National Cooperative Bank, NA12 567$1,422 $2.5BNY Mellon13 89$1,299 $14.6

Trimont Real Estate Advisors, Inc.14 16$1,296 $81.0

Berkadia Commercial Mortgage LLC15 1,091$901 $0.8

Prudential Asset Resources16 44$561 $12.7Cohen Financial17 548$520 $0.9

Protective Life Ins. Co.18 381$455 $1.2

Capital Crossing Servicing Company19 216$265 $1.2Principal Global Investors20 20$30 $1.5

95




Rank CompanyAmount



Total Named Special Servicing

TOTAL LOANS

Total US Collateral


Avg. Loan Size ($m)

LNR Partners, LLC1 10,295$134,860 $13.1

PNC Real Estate / Midland Loan Services2 5,305$116,768 $22.0C-III Asset Management, LLC3 11,609$114,449 $9.9

CWCapital Asset Management LLC4 8,351$112,899 $13.5

Prudential Asset Resources5 4,353$69,745 $16.0

Wells Fargo Bank NA6 3,641$68,478 $18.8KeyBank National Association7 5,842$49,534 $8.5

MetLife8 557$33,804 $60.7

Northwestern Mutual9 676$27,493 $40.7New York Life Investors10 606$24,506 $40.4

Situs11 1,611$24,005 $14.9

Cohen Financial12 2,621$18,760 $7.2Strategic Asset Services13 158$16,631 $105.3

Principal Global Investors14 1,652$14,489 $8.8


Voya Investment Management LLC16 1,188$9,972 $8.4StanCorp Mortgage Investors, LLC17 6,507$8,699 $1.3

NorthStar18 249$5,915 $23.8

National Cooperative Bank, NA19 3,552$5,523 $1.6Protective Life Ins. Co.20 1,816$5,149 $2.8

Lancaster Pollard Mortgage Company21 855$4,400 $5.1

Aegon Usa Realty Advisors, LLC22 44$4,144 $94.2

Arbor Commercial Mortgage, LLC23 528$3,434 $6.5Berkeley Point Capital, LLC24 178$3,391 $19.1

RiverSource Life Insurance Company25 934$2,729 $2.9

Trimont Real Estate Advisors, Inc.26 443$1,896 $4.3Capital Crossing Servicing Company27 1,135$1,369 $1.2

BNY Mellon28 89$1,299 $14.6

Ameritas Life Insurance Corp.29 865$1,295 $1.5

Berkadia Commercial Mortgage LLC30 1,091$901 $0.8Great-West Financial31 74$552 $7.5

Directed Capital32 168$214 $1.3

State Farm Life Insurance Company33 8$107 $13.4Allstate Investments34 3$16 $5.3

Barry S. Slatt Mortgage Company35 1$9 $8.6

96




Rank CompanyAmount




TOTAL LOANS

C/MF Loans Secured by Collateral OUTSIDE the US


Avg. Loan Size ($m)

Situs1 385$28,232 $73.3

GEMSA Loan Services, L.P.2 517$14,762 $28.6LNR Partners, LLC3 174$11,935 $68.6

Manulife Financial / John Hancock 4 1,211$7,892 $6.5

PNC Real Estate / Midland Loan Services5 790$7,662 $9.7

MetLife6 133$7,267 $54.6Trimont Real Estate Advisors, Inc.7 158$4,520 $28.6


Berkadia Commercial Mortgage LLC9 53$2,083 $39.3Pacific Life Insurance Company10 16$570 $35.6


97




6. Recent Commercial/Multifamily Research Releases from MBA

The following reports can be found at www.mba.org/crefresearch. If you have trouble locating these or other MBA reports, email [email protected]

Commercial/Multifamily Delinquencies Continue to Decline in First QuarterDelinquency rates for commercial and multifamily mortgage loans continued to decline in the first quarter of 2015, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report.

6/1/2015

Q1 Commercial & Multifamily Mortgage Originations Up 49 Percent Year-Over-YearAccording to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, first quarter 2015 commercial and multifamily mortgage loan originations were 49 percent higher than during the same period last year. Following the usual seasonal pattern, first quarter 2015 originations saw a 26 percent decrease from the fourth quarter of 2014.

5/4/2015

Mortgage Bankers’ Commercial/Multifamily Originations Rise to $400 Billion in 2014Commercial and multifamily mortgage bankers closed $399.8 billion of loans in 2014, according to the Mortgage Bankers Association's (MBA) 2014 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

4/8/2015

MBA Releases 2014 Rankings of Commercial/Multifamily Mortgage Firms’ Origination VolumesThe Mortgage Bankers Association (MBA) today released its annual ranking of commercial/multifamily mortgage firms by origination volume. The MBA study is the only one of its kind to present a comprehensive set of listings of 127 different commercial/multifamily mortgage originators, their 2014 volumes and the different roles they play.

3/19/2015

98




Commercial/Multifamily Mortgage Debt Outstanding Grew at the Fastest Pace Since 2007Total commercial/multifamily debt outstanding stood at $2.64 trillion in the fourth quarter of 2014, an increase of $48.9 billion, or 1.9 percent, over the third quarter, according to data collected by the Mortgage Bankers Association (MBA). Commercial/multifamily debt outstanding increased at the highest rate since the fourth quarter of 2007, as three of the four major investor groups increased their holdings in the fourth quarter. On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2014 was $119.5 billion higher than at the end of 2013, an increase of 4.7 percent.

3/17/2015

Commercial/Multifamily Delinquencies Continue DeclineDelinquency rates for commercial and multifamily mortgage loans continued to decline in the fourth quarter of 2014, according to the Mortgage Bankers Association's (MBA) Commercial/Multifamily Delinquency Report.

3/3/2015

MBA Datanote Explores Gaps in Affordability of Multifamily Rental HousingThe Mortgage Bankers Association (MBA) today released a research datanote entitled "Mind the Gap: A High-level Review of the Need for - and Supply of - Affordable Multifamily Housing." The paper focuses on multifamily rental housing because of the central role that sector plays in providing affordable housing.

2/19/2015

2014 Q4 Commercial/Multifamily Mortgage Originations Up Eleven Percent from 2013 Q4; 2014 Total Up Seven Percent from 2013 TotalCommercial and multifamily mortgage originations increased 27 percent between the third and the fourth quarters of 2014, and were up eleven percent compared to the fourth quarter of 2013, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. MBA's commercial/multifamily mortgage bankers' originations index provides a preliminary estimate that originations for the full year 2014 were seven percent higher than in 2013.

2/2/2015

Thirty-Two Percent Increase in Volume of Commercial and Multifamily Mortgages Maturing This YearEight percent, or $121.0 billion of $1.5 trillion, of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2015, a 32 percent increase from the $91.7 billion that matured in 2014, according to the Mortgage Bankers Association's 2014 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. Maturities will grow to $223 billion in 2016.

2/2/2015

99




MBA Forecasts 7 Percent Rise in Commercial/Multifamily Mortgage Bankers Originations in 2015; Mortgage Debt Outstanding to Rise to $2.7 TrillionThe Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will grow to $414 billion in 2015, an increase of 7 percent from 2014 volumes, and continue to rise to $430 billion in 2016. Multifamily mortgages originated by mortgage bankers are forecast to be $152 billion in 2015.

2/2/2015

MBA Releases 2014 Year-End Commercial/Multifamily Servicer RankingsThe Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers' volumes as of December 31, 2014. At the top of the list of firms is Wells Fargo with $474.4 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $396.8 billion, Berkadia Commercial Mortgage LLC with $236.3 billion, KeyBank National Association with $174.4 billion, and GEMSA Loan Services, L.P. with $101.3 billion. Wells Fargo, PNC/Midland, KeyBank, and Berkadia are the largest master and primary servicers of commercial/multifamily loans in U.S. commercial mortgage backed securities (CMBS), collateralized debt obligations (CDO) and other asset-backed securities (ABS); Prudential Asset Resources, PNC/Midland, GEMSA, and MetLife are the largest servicers for life companies; PNC/Midland, Wells Fargo, Walker & Dunlop, LLC, and Berkeley Point Capital, LLC are the largest Fannie Mae servicers; Wells Fargo, PNC/Midland, KeyBank National Association, and GEMSA are the largest Freddie Mac servicers.

2/1/2015

Commercial Mortgage Lenders Anticipate Growth in 2015Commercial and multifamily mortgage lending is expected to increase in 2015, as lenders' appetites to place new loans remains very strong and borrowers' appetites to borrow increase, according to a new Mortgage Bankers Association survey of the top commercial and multifamily mortgage origination firms. A full 100 percent of the top firms expect originations to increase in 2015, with 68 percent expecting an increase of 5 percent or more. Almost three quarters (72 percent) expect their own firm's originations to increase by 5 percent or more.

1/13/2015

Commercial/Multifamily Mortgage Debt Rises to Record HighThe level of commercial/multifamily mortgage debt outstanding increased by $28.6 billion in the third quarter of 2014, as the four major investor groups increased their holdings. That is a 1.1 percent increase over the second quarter of 2014.

12/16/2014

Commercial/Multifamily Delinquencies Continue Decline in Third QuarterDelinquency rates for commercial and multifamily mortgage loans continued to decline in the third quarter of 2014, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

12/2/2014

100




Commercial/Multifamily Mortgage Bankers Originations UpAccording to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, third quarter 2014 commercial and multifamily mortgage loan originations were 16 percent higher than during the same period last year, and 18 percent higher than the second quarter of 2014.

10/28/2014

Multifamily Lending Hits New Record in 2013In 2013, 2,898 different multifamily lenders provided a total of $172.5 billion in new mortgages for apartment buildings with five or more units, according to a report from the Mortgage Bankers Association (MBA). The 2013 dollar volume represents an 18 percent increase from 2012 levels. Sixty-two percent of the active lenders made five or fewer multifamily loans over the course of the year.

10/17/2014

Commercial/Multifamily Mortgage Debt Outstanding Continues to RiseAccording to a Mortgage Bankers Association (MBA) report released today, the level of commercial/multifamily mortgage debt outstanding increased by $24.9 billion in the second quarter of 2014, as three of the four major investor groups increased their holdings. That is a 1.0 percent increase over the first quarter of 2014.

10/16/2014

Commercial/Multifamily Delinquencies Continue DeclineDelinquency rates for commercial and multifamily mortgage loans continued to decline in the second quarter of 2014, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

9/4/2014

MBA Releases 2014 Mid-Year Commercial/Multifamily Servicer RankingsThe Mortgage Bankers Association (MBA) today released its mid-year ranking of commercial and multifamily mortgage servicers’ volumes as of June 30, 2014. At the top of the list of firms is Wells Fargo with $446.8 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $378.2 billion, Berkadia Commercial Mortgage LLC with $242.9 billion, KeyBank National Association with $167.2 billion, and GEMSA Loan Services, L.P. with $95.7 billion.

8/28/2014

Commercial/Multifamily Borrowing Remains on Pace with Last YearAccording to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, second quarter 2014 commercial and multifamily mortgage loan originations were two percent lower than during the same period last year, but 34 percent higher than the first quarter of 2014.

7/31/2014

101




Commercial/Multifamily Mortgage Debt Outstanding Rises to Another High in First QuarterThe level of commercial/multifamily mortgage debt outstanding increased by $11.1 billion in the first quarter of 2014, as three of the four major investor groups increased their holdings. That is a 0.4 percent increase over the fourth quarter of 2013.

6/9/2014

Commercial/Multifamily Delinquencies Continue Decline in First QuarterDelinquency rates for commercial and multifamily mortgage loans continued to decline in the first quarter of 2014, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

6/3/2014

First Quarter Commercial and Multifamily Mortgage Originations at Same Pace as Q1 2013According to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, first quarter 2014 commercial and multifamily mortgage loan originations were one percent lower than during the same period last year and 45 percent lower than the fourth quarter of 2013.

5/6/2014

Mortgage Bankers’ Commercial/Multifamily Originations Rose to $358.5 Billion in 2013Commercial and multifamily mortgage bankers closed $358.5 billion of loans in 2013 according to the Mortgage Bankers Association’s (MBA) 2013 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

4/8/2014

MBA Releases 2013 Commercial/Multifamily Mortgage Origination Volume RankingsAccording to a set of commercial/multifamily real estate finance league tables prepared by the Mortgage Bankers Association (MBA), Wells Fargo; J.P. Morgan Chase & Company; Bank of America Merrill Lynch; Eastdil Secured; KeyBank; PNC Real Estate; HFF, L.P.; Meridian Capital Group, LLC; CBRE Capital Markets; and Prudential Mortgage Capital Company were the top commercial/multifamily mortgage originators in 2013.

4/1/2014

Commercial/Multifamily Mortgage Debt Outstanding Ends Year at Record LevelThe level of commercial/multifamily mortgage debt outstanding increased by $41.2 billion, or 1.7 percent, in the fourth quarter of 2013, as all four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA). On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2013 was $90.5 billion higher than at the end of 2012, an increase of 3.7 percent. Multifamily mortgage debt outstanding rose to $895 billion, an increase of $11.5 billion, or 1.3 percent, from the third quarter and $36.6 billion, or 4.3 percent, from the fourth quarter of 2012.

3/12/2014

102




Commercial/Multifamily Delinquencies Decline in Fourth QuarterDelinquency rates for commercial and multifamily mortgage loans continued to decline in the fourth quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

3/4/2014

MBA Forecasts $300 Billion of 2014 Commercial/Multifamily Mortgage OriginationsThe Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will grow to $300 billion in 2014, a 7 percent increase from 2013 volumes, and continue to rise to $333 billion in 2016. Originations of multifamily mortgages are forecast at $116 billion in 2014.

2/3/2014

Q4 Commercial and Multifamily Mortgage Originations Highest Since 2007Commercial and multifamily mortgage originations increased 34 percent between the third and the fourth quarters of 2013, and were up 16 percent compared to the fourth quarter of 2012, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers’ Originations. MBA’s commercial/multifamily mortgage bankers’ originations index shows originations for the full year 2013 were 15 percent higher than in 2012.

2/3/2014

MBA: Significant Drop in Commercial and Multifamily Loan Maturities in 2014Today, the Mortgage Bankers Association (MBA) released its 2013 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. The survey found six percent, or $91.7 billion of the $1.5 trillion of outstanding commercial and multifamily mortgages held by non-bank lenders and investors, will mature in 2014. That represents a 23 percent decline from the $119.5 billion that matured in 2013. Maturities will grow to $213 billion in 2016.

2/3/2014

MBA Releases 2013 Year-End Commercial/Multifamily Servicer RankingsThe Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers’ volumes as of December 31, 2013. At the top of the list of firms is Wells Fargo with $434.4 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $369.6 billion, Berkadia Commercial Mortgage LLC with $235.4 billion, KeyBank National Association with $169.7 billion, and GEMSA Loan Services, L.P. with $95.6 billion.

2/2/2014

103




Commercial Mortgage Lender Appetite Expected to Exceed that of Borrowers in 2014Commercial and multifamily mortgage lending is expected to increase in 2014, as lenders’ appetites to place new loans grow even stronger, according to a new Mortgage Bankers Association survey of the top commercial and multifamily mortgage origination firms. Lenders were also polled on their expectations for borrower appetites in the New Year. A full 91 percent of the top firms expect originations to increase in 2014, with 48 percent expecting an increase of 5 percent or more. Almost two-thirds (64 percent) expect their own firm’s originations to increase by 5 percent or more.

1/8/2014

Commercial/Multifamily Mortgage Debt Outstanding Posts Largest Increase Since 2008According to a new report from the Mortgage Bankers Association (MBA), the level of commercial/multifamily mortgage debt outstanding increased by $25.2 billion in the third quarter of 2013, as all four major investor groups increased their holdings. That is a 1.0 percent increase over the second quarter of 2013.

12/12/2013

Q3 2013 Commercial/Multifamily Mortgage Bankers Originations Up 29 Percent from Q3 2012Commercial and multifamily mortgage origination volumes during the third quarter of 2013 were 29 percent higher than during the third quarter of 2012 and originations were essentially flat compared to second quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

10/24/2013

Multifamily Lending Up 33 Percent in 2012 to $146 billion In 2012, 2,803 different multifamily lenders provided a total of $146.1 billion in new mortgages for apartment buildings with five or more units, according to a report from the Mortgage Bankers Association (MBA). The 2012 dollar volume represents a 33 percent increase from 2011 levels. Sixty-seven percent of the active lenders made five or fewer multifamily loans over the course of the year. The MBA report is based on its surveys of the larger multifamily lenders and the recently released Home Mortgage Disclosure Act (HMDA) data that covers multifamily loans made by many smaller lenders, particularly commercial banks.

10/10/2013

MBA Releases Commercial/Multifamily Quarterly Data Book for Q2 2013The Mortgage Bankers Association (MBA) released its second quarter 2013 Commercial Real Estate/Multifamily Finance Quarterly Data Book.

9/30/2013

104




Commercial/Multifamily Mortgage Debt Outstanding Increases $24.5 Billion in Q2The level of commercial/multifamily mortgage debt outstanding increased by $24.5 billion, or one percent, in the second quarter of 2013, as three of the four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA).

9/27/2013

Commercial/Multifamily Delinquency Rates Decline in Q2Delinquency rates for commercial and multifamily mortgage loans declined in the second quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

9/4/2013

MBA Releases 2013 Mid-Year Commercial/Multifamily Servicer RankingsThe Mortgage Bankers Association (MBA) today released its mid-year ranking of commercial and multifamily mortgage servicers’ volumes as of June 30, 2013. At the top of the list of firms is Wells Fargo with $431.0 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $352.8 billion, Berkadia Commercial Mortgage LLC with $235.0 billion, KeyBank Real Estate Capital with $165.4 billion, and GEMSA Loan Services, L.P. with $98.4 billion.

8/8/2013

Q2 Commercial/Multifamily Originations Up 7 Percent from Last Year; 36 Percent from Q1Commercial and multifamily mortgage origination volumes during the second quarter of 2013 were seven percent higher than during the second quarter of 2012 and 36 percent higher than during the first quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

7/30/2013

MBA Releases Commercial/Multifamily Quarterly Data Book for Q1 2013The Mortgage Bankers Association (MBA) released its first quarter 2013 Commercial Real Estate/Multifamily Finance Quarterly Data Book.

6/30/2013

Commercial/Multifamily Mortgage Debt Outstanding Falls Slightly in Q1The level of commercial/multifamily mortgage debt outstanding decreased by $4.9 billion, or 0.2 percent, in the first quarter of 2013, the first quarterly decrease since the third quarter of 2011, according to the Mortgage Bankers Association (MBA).

6/18/2013

Most Commercial/Multifamily Delinquency Rates Decline in Q1Delinquency rates for commercial and multifamily mortgage loans generally declined in the first quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

6/4/2013

105




Q1 2013 Commercial/Multifamily Mortgage Bankers Originations Up 9% from Q1 2012First quarter 2013 commercial and multifamily mortgage loan originations were nine percent higher than during the same period last year and 36 percent lower than the fourth quarter of 2012, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

4/30/2013

Mortgage Bankers’ Commercial/Multifamily Originations Rise to $244.2 Billion In 2012Commercial and multifamily mortgage bankers closed $244.2 billion of loans in 2012 according to the Mortgage Bankers Association’s (MBA) 2012 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

4/17/2013

MBA Releases 2012 Rankings of Commercial/Multifamily Mortgage Firms’ Origination VolumesWells Fargo was the top commercial/multifamily mortgage originator in 2012, according to a set of commercial/multifamily real estate finance league tables prepared by the Mortgage Bankers Association (MBA). Other top originators include Bank of America Merrill Lynch; HFF, L.P.; PNC Real Estate; Meridian Capital Group, LLC; CBRE Capital Markets, Inc.; Prudential Mortgage Capital Company; KeyBank Real Estate Capital; Jones Lang LaSalle; Walker & Dunlop; Northmarq Capital LLC and Berkadia.

3/21/2013

Commercial/Multifamily Mortgage Debt Increases by Largest Amount Since 2008The level of commercial/multifamily mortgage debt outstanding increased by $21.8 billion, or 0.9 percent, in the fourth quarter of 2012, as all four major investor groups increased their holdings, according to the Mortgage Bankers Association (MBA). On a year-over-year basis, the amount of mortgage debt outstanding at the end of 2012 was $29.7 billion higher than at the end of 2011, an increase of 1.2 percent.

3/11/2013

Commercial/Multifamily Mortgage Delinquency Rates Continued Down in Fourth QuarterDelinquency rates continued to decline for commercial and multifamily mortgage loans in the fourth quarter of 2012, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

3/5/2013

MBA DataNote: Commercial and Multifamily Mortgages Banks’ Best Performing Loans and Leases through Credit Crunch and Recession An analysis of data from the Federal Deposit Insurance Corporation (FDIC) shows that commercial and multifamily mortgages fared better through the credit crunch and recession than any other major type of loan held by banks and thrifts, according to a DataNote released today by the Mortgage Bankers Association (MBA).

3/5/2013

106




MBA Releases 2012 Year-End Commercial/Multifamily Servicer RankingsThe Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers as of the end of December 31, 2012. At the top of the list of firms is Wells Fargo with $429.1 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $337.6 billion, Berkadia Commercial Mortgage LLC with $197.3 billion, Bank of America Merrill Lynch with $112.5 billion, and KeyBank Real Estate Capital with $101.2 billion.

2/4/2013

21 Percent Drop In Volume of Commercial and Multifamily Mortgages Maturing This Year$119.5 billion, eight percent of the outstanding balance, of commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2013, a 21 percent decline from the $150.6 billion that matured in 2012, according to today’s release of the Mortgage Bankers Association’s (MBA) 2012 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes.

2/4/2013

Commercial/Multifamily Mortgage Originations Up 49 Percent in Q4, Up 24 Percent for YearCommercial and multifamily mortgage originations increased 49 percent between the third and the fourth quarters of 2012, and were also up 49 percent compared to the fourth quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

2/4/2013

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About the Commercial / Multifamily Quarterly DatabookThe Commercial / Multifamily Quarterly Databook is produced quarterly by the Research and Economics staff of the Mortgage Bankers Association and can be found at mba.org/research. For more information, contact Jamie Woodwell, MBA’s Vice President of Commercial / Multifamily Research, at (202) 557-2936 or [email protected].

About the Mortgage Bankers AssociationThe Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s web site: mba.org.

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