Quintessential Mortgage Group, LLC
NMLS # 979266

Decoding Commercial Real Estate in Q3'23

November 11th, 2023

Front of house with blue sky.

Market Trends: A 49% Decrease in Loan Originations


In Q3 2023, the commercial and multifamily mortgage market experienced a substantial 49% decrease in loan originations compared to the previous year. This decline reflected a collective response to uncertainties within the industry.

Amidst the overall decline, a throughline emerged within industrial properties. Life company lenders showcased resilience through such a tenuous time and Quintessential Mortgage Group, closely attuned to market dynamics, has worked alongside these lenders maintaining a positive perspective through this downturn.

A Look Ahead

Zooming out, the broader picture of the year-to-date trend has been revealed. A 44% decrease in commercial real estate borrowing has been driven by apprehensions about property ownership, uncertainties in the market, and the constant ebb and flow of interest rates. Each property type faced its challenges against these uncertainties. Healthcare properties faced a dramatic 76% decrease in loans, while hotels and retail properties grappled with a 52% and 51% decrease, respectively. Quarterly dynamics added nuance to the ever-changing market as well. Healthcare properties saw a 28% increase during Q2 while industrial properties saw a 36% increase—showing that within the broader scope, pockets of resilience were clear. As the curtain falls on Q3 2023, Quintessential Mortgage Group champions the call for greater certainty. It’s not just about the numbers; it’s about setting the stage for a more stable and dynamic future. The market may have its challenges, but within each downturn lies a new opportunity.


At Quintessential Mortgage Group we are actively conducting thorough research, considering the numbers, and evaluating potential costs and savings for both purchasing or refinancing.  We’ll be there with you every step of the way. 

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