Credit unions gained in commercial real estate production in the third quarter, but banks and other lenders left credit unions in the dust.

NCUA data from Callahan’s Peer Suite showed credit unions produced $9.3 billion in commercial real estate loans in the three months ending Sept. 30, up 8.2% from a year earlier and up 0.7% from the second quarter.

That included $1.7 billion in third-quarter multi-family originations, up 8.7% from a year earlier and up 7.3% from the second quarter.

Both categories had their highest volume since at least 2023’s second quarter.

However, the Mortgage Bankers Association found gains were far bigger among other lenders.

The MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations released Nov. 8 showed that total production of commercial loans backed by real estate in the third quarter was up 59% from a year earlier and up 44% from the second quarter. Multi-family loan rose 56% from a year earlier and rose 53% from the second quarter.

Jamie Woodwell, the MBA’s head of commercial real estate research, said production picked up in the third quarter after a slow start in the first half.

“Lower interest rates were a key driver of the increase, with the yield on the Ten-year Treasury bond dropping during the quarter from an average of 4.31% in June to 3.72% in September,” Woodwell said. “Long-term rates have increased more recently, which could slow last quarter’s momentum.”

“Each property and loan is unique and faces a different situation depending on its property type, market, submarket, vintage, business plan and more,” he said.

“All those factors will play a role in the volume of borrowing/lending in coming quarters.”

Besides multi-family, the MBA reported the dollar volume of loan production also rose for most other categories in the third quarter:

• Health care properties rose six fold from a year earlier and nearly tripled from the second quarter.
• Hotels doubled from a year earlier, but fell 25% from the second quarter.
• Retail rose 82% from a year earlier and rose 56% from the second quarter.
• Industrial properties rose 57% from a year earlier and rose 21% from the second quarter.
• Office property originations fell 3% from a year earlier, but rose 42% from the second quarter.