Commercial/Multifamily Borrowing Increased 66% in the Second Quarter of 2025, MBA Reports
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Commercial and multifamily mortgage loan originations were 66% higher in the second quarter of 2025 compared to a year earlier, and increased 48% from the first quarter of 2025, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Commercial and multifamily borrowing gained significant momentum in the second quarter of 2025, with strong increases across most property types and capital sources,” said Reggie Booker, MBA’s Associate Vice President of Commercial Research. “While multifamily and hotel lending remain below last year’s levels, much of the strong annual growth reflects the exceptionally low levels of activity reported last year. Lending by depositories more than doubled, and originations by investor-driven lenders surged by over 90%, highlighting renewed interest from both traditional institutions and private capital.”
ORIGINATIONS INCREASE 66% IN THE SECOND QUARTER OF 2025
Compared to a year earlier, a rise in originations for office, health care, and industrial properties led to an overall increase in commercial/multifamily lending volumes. There was a 140% year-over-year increase in the dollar volume of loans for office properties, a 77% increase for health care properties, a 53% increase for industrial properties, and a 30% increase for retail properties. Originations for multifamily properties decreased 35%, and hotel property loan originations decreased 30% compared to the second quarter of 2024.
Among investor types, the dollar volume of loans originated for depositories increased by 108% year-over-year. There was a 93% increase in loans for investor-driven lenders, a 72% increase in loans for life insurance companies, a 59% increase in government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans, and a 10% decrease in commercial mortgage-backed securities (CMBS) loans.
SECOND QUARTER 2025 ORIGINATIONS UP 48% FROM THE FIRST QUARTER OF 2025
On a quarterly basis, second quarter originations for industrial properties increased 102% compared to the first quarter of 2025. There was a 90% increase in originations for health care properties, a 58% increase for retail properties, and originations for hotel properties were unchanged compared to the first quarter of 2025. Originations for office properties decreased 18%, and multifamily originations decreased 41% compared to the first quarter of 2025.
Among investor types, between the first quarter and second quarter of 2025, the dollar volume of loans for investor-driven lenders increased 107%, loans for life insurance companies increased 71%, originations for GSEs increased 54%, and loans for depositories increased 36%. The dollar volume of loans for CMBS decreased by 20%.
To view the report, please click here.
