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.
| 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%.
| 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. | ||||