Commercial/Multifamily Borrowing Up in the Fourth Quarter of 2025
Commercial and multifamily mortgage loan originations were 30% higher in the fourth quarter of 2025 compared to a year earlier, and increased 25% from the third quarter of 2025, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations released at the 2026 Commercial/Multifamily Finance Convention and Expo.
“The 30% increase in originations during the final three months of 2025 capped a much stronger year for commercial and multifamily mortgage lending, as activity for depositories increased sharply in the fourth quarter and for 2025 as a whole,” said Reggie Booker, MBA’s Associate Vice President of Commercial/Multifamily Research. “Higher origination volumes in the fourth quarter point to improving conditions in commercial mortgage markets, though activity remains uneven across property types.”
Added Booker,“2025 represented a strong rebound from 2024, as lending volumes increased across most investor categories amid greater rate stability and clearer pricing expectations.”
ORIGINATIONS INCREASE 30% IN THE FOURTH QUARTER OF 2025
Compared to a year earlier, a rise in originations for office, multifamily, industrial, and healthcare properties led to an overall increase in commercial/multifamily lending volumes. There was a 95% year-over-year increase in the dollar volume of loans for office properties, a 23% increase for industrial properties, a 22% increase for multifamily properties, and a 20% increase for health care properties. Conversely, there was a 12% decrease for retail properties, and hotel property loan originations decreased 34% compared to the fourth quarter of 2024.
Among investor types, the dollar volume of loans originated for depositories increased by 74% year-over-year. There was a 46% increase in loans for investor-driven lenders, a 5% increase in commercial mortgage-backed securities (CMBS) loans, a 4% increase in government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans, and a 1% increase in life insurance company loans.
FOURTH QUARTER ORIGINATIONS UP 25% FROM THE THIRD QUARTER OF 2025
On a quarterly basis, fourth-quarter originations for industrial properties increased 29% compared to the third quarter 2025. There was a 17% increase in originations for multifamily properties, a 2% increase for health care properties, and a 2% increase for hotel properties. Originations for retail properties decreased 32%, and originations for office properties decreased 1% compared to the third quarter of 2025.
Among investor types, between the third and fourth quarters of 2025, the dollar volume of loans for depositories increased 54%, loans for life insurance companies increased 27%, originations for investor-driven lenders increased 21%, loans for CMBS increased 6%, and the dollar volume of loans for GSEs were unchanged.
PRELIMINARY 2025 ORIGINATIONS 40% HIGHER THAN 2024
A preliminary measure of commercial mortgage bankers’ originations volumes shows activity in 2025 was 40% higher than in 2024. By property type, mortgage bankers’ originations for office properties increased 146% from 2024, multifamily properties increased 36%, retail properties increased 27%, industrial properties increased 20%, and health care properties increased 7%. Hotel properties decreased 7%.
Among investor types, for 2025 compared to 2024, mortgage bankers originations for depositories increased 74%, originations for investor-driven lenders increased 59%, loans for GSEs increased 27%, loans for life insurance companies increased 23%, and CMBS loans increased 8%.
In late March 2026, MBA will release its Annual Origination Summation report for 2025 with final origination figures for the year. To view the report, click here.
