Commercial real estate mortgage borrowing and lending increased 40% year over year in 2025. According to the Mortgage Bankers Association’s 2025 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation, total borrowing and lending is estimated at $706 billion, up from $505 billion in 2024 and $429 billion in 2023.
According to MBA’s survey, $606 billion of loans were closed by dedicated commercial mortgage bankers last year, 48% more than the $411 billion reported in 2024. MBA estimated activity from smaller and midsized depositories from other data sources to arrive at the $706 billion for the total commercial real estate market.
Multifamily properties saw the highest volume last year among commercial real estate, with an estimated $413 billion of total lending and $299 billion directly tracked by dedicated mortgage bankers. In addition, first liens accounted for 95% of the mortgage bankers’ dollar volume closed.
“As capital markets conditions stabilized in 2025, there was a meaningful rebound in commercial real estate lending activity, with originations increasing 40% from 2024 and rising sharply from the prior two years,” said Reggie Booker, associate vice president of commercial research. “The strength in multifamily originations, combined with increased lending from depositories and a return of capital from other lender groups, reflects growing confidence across the commercial real estate finance market. While challenges remain, particularly around refinancing and asset valuations, the significant pickup in activity underscores the market’s ability to adapt to a higher-rate environment.”
According to the MBA, dedicated mortgage banking firms reported closing $606 billion of commercial real estate loans in their own names and serving as intermediaries on $440 billion. Firms reported serving as investment sales brokers for $332 billion of transactions.
Depositories topped the list of leading capital sources in 2025, followed by government-sponsored enterprises Fannie Mae and Freddie Mac, private-label commercial mortgage-backed securities, life insurance companies and pension funds, investor-driven lenders, and Federal Housing Administration/Ginnie Mae.