Commercial/Multifamily Borrowing Increased 66% in the Second Quarter of 2025

WASHINGTON, D.C. (July 31, 2025) – Commercial and multifamily mortgage loan originations were 66 percent higher in the second quarter of 2025 compared to a year earlier, and increased 48 percent 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 percent, highlighting renewed interest from both traditional institutions and private capital.”

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 percent year-over-year increase in the dollar volume of loans for office properties, a 77 percent increase for health care properties, a 53 percent increase for industrial properties, and a 30 percent increase for retail properties. Originations for multifamily properties decreased 35 percent, and hotel property loan originations decreased 30 percent compared to the second quarter of 2024.  

Among investor types, the dollar volume of loans originated for depositories increased by 108 percent year-over-year. There was a 93 percent increase in loans for investor-driven lenders, a 72 percent increase in loans for life insurance companies, a 59 percent increase in government sponsored enterprises (GSEs – Fannie Mae and Freddie Mac) loans, and a 10 percent decrease in commercial mortgage-backed securities (CMBS) loans.

On a quarterly basis, second quarter originations for industrial properties increased 102 percent compared to the first quarter of 2025. There was a 90 percent increase in originations for health care properties, a 58 percent increase for retail properties, and originations for hotel properties were unchanged compared to the first quarter of 2025. Originations for office properties decreased 18 percent, and multifamily originations decreased 41 percent 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 percent, loans for life insurance companies increased 71 percent, originations for GSEs increased 54 percent, and loans for depositories increased 36 percent. The dollar volume of loans for CMBS decreased by 20 percent.

To view the report, please click here.