MBA: Commercial/Multifamily Borrowing Increased 36% in the Third Quarter of 2025
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Commercial and multifamily mortgage loan originations were 36% higher in the third quarter of 2025 compared to a year earlier, and increased 18% from the second quarter of 2025, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Commercial and multifamily borrowing has now increased for five straight quarters on both a quarterly and annual basis,” said Reggie Booker, MBA’s Associate Vice President of Commercial/Multifamily Research. “Lending activity increased last quarter across most major property types and capital sources, led by particularly strong growth in office, retail, and hotel properties. While some sectors, such as health care and industrial saw slower activity, overall volumes reflected improving sentiment as property values stabilized and loans reaching maturity were refinanced.”
ORIGINATIONS INCREASE 36% IN THE THIRD QUARTER OF 2025
Compared to a year earlier, a rise in originations for office, retail, hotel, and multifamily properties led to an overall increase in commercial/multifamily lending volumes. There was an 181% year-over-year increase in the dollar volume of loans for office properties, a 100% increase for retail properties, a 66% increase for hotel properties, a 27% increase for multifamily properties, and a 5% increase for industrial properties. Originations for health care properties loan originations decreased 43% compared to the third quarter of 2024.
Among investor types, the dollar volume of loans originated for investor-driven lenders increased by 83% year-over-year. There was a 52% increase in loans for depositories lenders, a 40% increase in loans for government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac), a 5% increase in commercial mortgage-backed securities (CMBS) loans, and a 4% decrease in life company loans.
THIRD QUARTER 2025 ORIGINATIONS UP 18% FROM THE SECOND QUARTER OF 2025
On a quarterly basis, third quarter originations for retail properties increased 141% compared to the second quarter of 2025. There was a 76% increase in originations for hotel properties, a 67% increase for office properties, and a 12% increase for multifamily properties. Originations for health care properties decreased 6% and industrial properties decreased by 17% compared to second quarter of 2025.
Among investor types, between the second quarter and third quarter of 2025, the dollar volume of loans for GSEs increased 37%, loans for depositories increased 36%, originations for CMBS loans increased 31 percent, and loans for investor-driven lenders increased 14%. The dollar volume of loans for life insurance companies decreased by 22%.
To view the report, click here: https://www.mba.org/news-and-research/research-and-economics/commercial-multifamily-research/quarterly-commercial-multifamily-mortgage-bankers-originations-index.
