CBRE: Commercial Real Estate Lending Activity at Five-Year High
(Image courtesy of Chait Goli/pexels.com)
CBRE, Dallas, released its Lending Momentum Index for Q1, finding that commercial real estate investment volume increased by 19% year-over-year in the quarter to $117 billion.
Trailing four-quarter volume increased by 24% to $534 billion.
The index rose to a score of 1.5 in Q1, up from 1.2 in Q4 and 0.3 in Q1 2025. That’s also the highest level it has recorded since 2021. Favorable lending conditions were shown by greater origination volumes, increased loan sizes (up 14% year-over-year), relatively stable spreads and improved LTV ratios. The average loan size sat at its highest level since figures dating to 2014.
Industrial and logistics was the leading sector, with $29.6 billion in investment volume. That’s up 23% year-over-year. Next was multifamily, at $29.4 billion, but down by 6% year-over-year.
Private investors provided the most activity, with $66 billion of Q1 investment volume, followed by institutional investors with $27 billion.
Alternative lenders were the biggest non-agency lenders, with 53% of Q1 closings. Banks accounted for 22% and life companies for 17%.
The spread on closed commercial mortgage loans averaged 181 basis points in Q1, down by 2 basis points year-over-year. Commercial LTV ratios averaged 61.5% in Q1, up from 59.9% in Q1 2025.
“We continue to see a more disciplined, yet increasingly healthy commercial real estate lending environment. Rising acquisition activity is driving meaningful price and value discovery, while fresh equity is helping rebalance lender and securitized portfolios,” said James Millon, president and co-head of Capital Markets, U.S. & Canada, for CBRE.
“Recapitalizations, particularly involving larger assets and portfolios, remain active, with well-structured financings often serving as the foundation for new joint ventures,” he continued. “Today, property owners and investors have a broader set of options to create liquidity beyond traditional sales, supporting strong market participation and capital absorption.”
