NE beats nation on CRE loan originations and cap rates

Posted on July 26, 2013

The Northeast saw the highest origination volume of commercial real estate loans compared to the rest of the country in the last 12 months, as well as the lowerst cap rate, according to the Trepp Market Snapshot Report.

At $21 billion, the Northeast was the U.S. leader in volume of originations of CRE loans in the last year while achieving the country’s lowest cap rate at 6.52 percent.

The closest competitor to the Northeast was the Pacific region where volume reached $9.8 billion with a cap rate of 6.86, the Southeast was next with $9.6 billion in volume and a 7.60 percent cap rate, followed by the Midwest with volume totaling $6.5 billion and a 7.82 percent cap rate, the Southwest had $6 billion in volume with a 7.54 percent cap rate and the Mountain region had $3.4 billion in volume with a 7.19 percent cap rate.

Massachusetts did $1.2 billion worth of CRE loans in the last year with an average cap rate of 6.81 percent across the sectors including office, multifamily, retail, lodging and industrial.