GUNNING FOR A LOAN SERVICING THREE-PEAT

Berkshire Mortgage Finance retained its title as the largest loan servicer for Fannie Mae and Freddie Mac at the close of 2002 with a servicing portfolio of $14.79 billion — a 19% increase over last year's first-place mark of $12.4 billion. A newcomer to the Top 10 list of Fannie Mae and Freddie Mac servicers is Washington Mutual Bank FA, a dominant multifamily lender on the West Coast.

Top 10 Fannie Mae and Freddie Mac Mortgage Servicers*
Company Amount (in billions) Number of Loans
Berkshire Mortgage Finance $14.79 1,706
ARCS Commercial Mortgage Co. $10.1 1,676
GMAC Commercial Mortgage Corp. $9.01 1,610
Prudential Asset Resources $5.37 657
Capri Capital $4.83 527
CapMark Services $4.76 737
Walker & Dunlop Inc. $4.23 618
American Property Financing Inc. $4.05 326
Washington Mutual Bank, FA $3.85 7,610
Reilly Mortgage Corp. $3.68 477
* The Mortgage Bankers Association survey includes only member firms servicing loans for third parties or affiliated organizations.
Source: MBA


CRUMBLING OFFICE MARKET

Hurt by the downsizing of companies and the overall lack of demand from the business sector, the national office market will continue to experience high vacancies and little absorption, according to Real Estate Research Corp.'s Winter 2003 report. Over the next six months, expect little growth in revenues and net operating income as expenses increase and landlords continue to fight for tenants.

WHERE RETAIL RENTS WILL RISE

More than any other property sector, retail property performance depends on local trade area conditions, says Grubb & Ellis. That's why the firm predicts that booming Las Vegas will show the highest retail rent increase.

TOO MUCH ROOM AT THE INN?

Houston is expected to increase its total number of hotel rooms by 7.6% over the next two years, making it the nation's top hotel builder. San Diego is a close second, with 6.7% growth projected by 2004. St. Louis is third at 6.1%.

Markets With The Highest Growth Rate
2003-2004*
2003 2004 TOTAL 2-Yr. Growth Rooms
Hotels Rooms Hotels Rooms Hotels Rooms
Houston 15 1,717 13 2,299 28 4,016 7.6%
San Diego 7 1,739 12 1,801 19 3,540 6.7%
St. Louis 7 1,364 5 584 12 1,948 6.1%
Seattle 6 1,207 7 889 13 2,096 6.0%
Miami 10 1,770 8 936 18 2,706 5.8%
Boston 9 1,381 9 1,265 18 2,646 5.7%
Detroit 9 1,074 10 1,020 19 2,094 5.6%
Industry Total 635 71,934 719 80,252 1,354 151,646 3.5%
*The figures for hotel completions are estimates of known projects in the development pipeline and are based on developers' projected timetable.
Source: Lodging Econometrics


ROOMIER RENTALS

A national survey of 2,000 renters conducted by Washington, D.C.-based National Association of Home Builders reveals that the average size of an apartment in the U.S. swelled to 1,100 sq. ft. in 2000, up from 900 sq. ft. in 1980. And still, many renters are hankering for more space. While only 10% of renters today live in an apartment with three bedrooms, 30% wish they did. Most renters want another bathroom, too.

Bedrooms Bathrooms
Number Have Want Have Want
One 42% 13% 75% 30%
Two 46% 44% 23% 60%
Three 10% 30% 2% 9%
Four 1% 12% 0% 1%
Source: National Association of Home Builders
Note: Statistical ties are due to rounding.