For those of you out there clinging to your commercial REIT stocks for their ‘defensive’ dividend yields while praying that the whole ‘retail implosion’ thing will simply go away, you may want to avert your eyes now. According to the Mortgage Bankers Association 4Q 2016 commercial real estate loan originations survey, mortgage originations related to discretionary segments of the economy are in complete free fall with retail andHOTEL volumes down 19% and 39%, respectively.
A decrease in originations forHOTEL, health care, and retail properties led the overall decline in commercial/multifamily lending volumes when compared to the fourth quarter of 2015. The fourth quarter saw a 39 percent year-over-year decrease in the dollar volume of loans forHOTEL properties, a 24 percent decrease for health care properties, a 19 percent decrease for retail properties, a 4 percent decrease for industrial properties, a one percent decrease in multifamily property loans, and a 6 percent increase in office property loans.
This post was published at Zero Hedge on Apr 11, 2017.
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