Multifamily Dominates 2024 Lending Activity

Multifamily lending accounted for more than half of 2024’s CRE mortgage activity.

Jordan B.
May 01, 2025

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Good morning. CRE financing found its footing last year, with borrowing and lending volumes climbing 16% to nearly $500B. With a tidal wave of loan maturities ahead, lenders and borrowers are gearing up for an active 2025.

Today's issue is sponsored by Ownwell—property tax savings, minus the hassle.

Market Snapshot

S&P 500

GSPC

5,528.75

Pct Chg:
+0.64%

FTSE NAREIT

FNER

753.63

Pct Chg:
+0.11%

10Y Treasury

TNX

4.227%

Pct Chg:
+0.011

SOFR

30-DAY AVERAGE

4.32%

Pct Chg:
-0.00

*Data as of 04/30/2024 market close.

Lending Rebound

Multifamily Drives CRE Lending’s 16% Gain

After a sharp pullback in 2023, CRE lending activity staged a comeback in 2024, though it remains well below peak levels seen two years prior.

Regaining ground: The Mortgage Bankers Association (MBA) estimates total CRE borrowing and lending reached $498B in 2024, marking a 16% jump from $429B in 2023. However, volume is still 39% off the 2022 high of $816B. Of the total, $411B came from dedicated mortgage bankers—up 34% YoY—while the rest was attributed to smaller and mid-sized lenders.

Multifamily leads the way: Multifamily properties drove the recovery, accounting for an estimated $326B in total lending, with $219B of that directly tracked through mortgage bankers. These loans were primarily first liens, which made up 92% of the dollar volume. The data underscores strong investor appetite and relatively favorable agency support in the multifamily segment.

Key capital players: Depositories topped the list of capital sources, followed by life companies, pension funds, CMBS issuers, GSEs (Fannie Mae and Freddie Mac), and investor-driven lenders. Mortgage bankers were also active as intermediaries and brokers, handling $303B in intermediary transactions and $247B in investment sales deals.

Refinancing wave ahead: With an estimated $957B in CRE mortgage maturities due in 2025, refinancing needs could sustain lending momentum, despite ongoing market volatility and rate sensitivity.

➥ THE TAKEAWAY

Looking ahead: While not a full return to the boom days of 2022, 2024’s lending rebound suggests a thaw in capital markets, especially in multifamily, just in time for what’s shaping up to be a high-stakes year for refinancing.

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✍️ Editor’s Picks

Portfolio pressure: Rising US tariffs have sparked fears of stagflation, with US stocks potentially falling 35% in a worst-case scenario.
Revenue recovery: Cushman & Wakefield returned to profitability in Q1 as office and industrial leasing rose, with most clients pushing ahead on deals despite economic uncertainty.
Design arms race: Short-term rental hosts are investing heavily in luxury design and amenities to attract high-paying guests and boost profits in a competitive market.
Debt downgrade: S&P downgraded LA’s bond ratings as the city faces a nearly $1B budget shortfall, drained reserves, and pressure to cut jobs.
Disaster response: From hurricanes to wildfires, REITs like Tanger, Prologis, and AvalonBay are stepping in with property, personnel, and funding to aid communities in crisis.

🏘️ MULTIFAMILY

Apartment anchor: Despite market turbulence, NYC multifamily is attracting investors with strong fundamentals, stable rents, and constrained supply.
Post pandemic: Five years after COVID reshaped housing trends, Sun Belt metros like Austin and South Florida dominate cumulative rent growth, driven by migration, tight supply, and surging demand.
Inventory milestone: The US multifamily market is nearing 20M units as strong absorption, steady job growth, and limited supply push occupancy to 95% and support rent stability across major metros.
Texas bet: Altus Equity Group has acquired 1,225 apartment units in Midland-Odessa, banking on the region’s booming energy economy and projected rent growth to drive returns above 10%.
Waco debut: Austin-based Parkspring Multifamily is launching its first project in Waco with a 372-unit apartment development at Cottonwood Creek.

🏭 Industrial

New venture: Blackstone has launched Proxity, a new 75 MSF pan-European logistics platform, signaling a major expansion into fragmented warehouse markets across Europe.
Market softening: Greater LA industrial rents fell nearly 14% YoY as economic uncertainty, tariffs, and weakened tenant demand continue to weigh on absorption and leasing activity.
Charlotte expansion: WareSpace makes its North Carolina debut with the off-market acquisition of an 80,120 SF warehouse in Charlotte’s NoDa district.

🏬 RETAIL

Spending spike: Retail foot traffic is surging as consumers accelerate purchases ahead of potential price hikes, with specialty food, apparel, and jewelry stores seeing sharp gains.
Culinary concessions: As closures rise across DC’s restaurant scene, landlords are sweetening deals with major tenant improvement allowances, rent flexibility, and profit-sharing structures to attract and retain operators.
Fragile recovery: Retail remains a surprisingly strong performer post-pandemic, but experts warn that mounting risks could weigh heavily on the sector in 2025.

🏢 OFFICE

Trophy turnaround: Deloitte’s 800 KSF lease at Related’s 70 Hudson Yards signals a major confidence boost in Manhattan’s top-tier office market.
Coworking king: LA has officially taken the lead in the national coworking race, topping the charts with 304 locations and nearly 7 MSF of shared office space.
Office rebound: US office investment kicked off 2025 on a high note, with $10.1B in sales during Q1, marking a 48.5% YoY gain.
Asset shift: Faced with weak office demand, JBG Smith is shelving office sales and turning to its higher-performing multifamily portfolio for liquidity.
Houston heat: Houston’s office investment sales are gaining steam in 2025 as investors capitalize on distress-driven listings, limited new construction, and a tightening Class-A vacancy rate.

🏨 HOSPITALITY

Miami makeover: A historic downtown Miami Holiday Inn is on the market as its owner seeks a buyer or partner for an 82-story redevelopment amid bankruptcy.

A MESSAGE FROM CRE MBA

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📈 CHART OF THE DAY

US retail space is increasingly scarce, with a record-low 4.8% availability rate in Q125, driven by sluggish development and a surge in obsolete inventory. This supply-demand imbalance is boosting landlord leverage and pushing rents above historical norms.