Bay Area Multifamily and Commercial Loan Volume Down 13%

Bay area multifamily and commercial loan volume down 13%.

Most of my industry contacts say they are seeing a drop in new multifamily and commercial loan activity in recent months. To get a more defininative measure on what was happening I pulled the number of recorded loans for the three month period ending in January of 2017 and the three month period ending January of 2016 using a service I use to retrieve property records. I pulled the counts of loans recorded during those periods broken down by property type: commerical and commericial office, light industrial and heavy industrial, apartment. I included the nine counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma.

What I found was that overall loan volume was down 13%, from 2,390 loans recorded in the three month period ending in January 2016 to 2,078 in January 2017. The biggest decline was in commercial and commericial office, where volume dropped 19.2% from 994 loans to 803 loans. The drop in apartment loans was less noticable, dropping 6.8% from 987 to 920. The drop in industrial was 13.2%, from 409 to 355.