- Commercial lending volume reached $706B in 2025, up 40% from 2024.
- Multifamily led all property types, with $413B in total lending activity.
- Depositories remained the top capital source for CRE mortgage debt.
- First liens accounted for 95% of mortgage bankers’ closed loan volume.
Commercial Lending Rebounds
Total commercial real estate (CRE) mortgage borrowing and lending reached $706B in 2025, a 40 percent increase over the previous year, according to the Mortgage Bankers Association’s latest annual report. The sharp rebound follows stabilized capital markets and reflects renewed investor confidence after several years of challenging conditions.
Multifamily Drives Volume
Multifamily properties dominated 2025 originations, with $413B in total lending. Of this, $299B came from dedicated mortgage bankers. This strong performance supported broader commercial lending momentum across US markets. Recent data also shows a sharp rebound in quarterly lending volumes, reinforcing the pace of recovery in key segments.
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Market Activity by Lender Type
Depositories provided the bulk of CRE mortgage debt, followed by government-sponsored enterprises, private label CMBS, life insurance companies, pension funds, and other investor-driven lenders. Dedicated mortgage banking firms reported closing $606B in CRE loans, with $440B of that as intermediaries and $332B in investment sales brokered deals.
Looking Ahead
The report notes that while challenges remain, particularly around refinancing and asset valuations, the significant pickup in commercial lending activity underscores the market’s adaptability in a higher-rate environment. Industry participants will be watching closely for trends in CRE borrowing and lending as 2026 unfolds.
