Commercial/Multifamily Borrowing Increased 36 Percent in the Third Quarter of 2025

WASHINGTON, D.C. (November 6, 2025) - Commercial and multifamily mortgage loan originations were 36 percent higher in the third quarter of 2025 compared to a year earlier, and increased 18 percent from the second quarter of 2025, according to the Mortgage Bankers Association's (MBA) 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 PERCENT 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 percent year-over-year increase in the dollar volume of loans for office properties, a 100 percent increase for retail properties, a 66 percent increase for hotel properties, a 27 percent increase for multifamily properties, and a 5 percent increase for industrial properties. Originations for health care properties loan originations decreased 43 percent compared to the third quarter of 2024.

Among investor types, the dollar volume of loans originated for investor-driven lenders increased by 83 percent year-over-year. There was a 52 percent increase in loans for depositories lenders, a 40 percent increase in loans for government sponsored enterprises (GSEs - Fannie Mae and Freddie Mac), a 5 percent increase in commercial mortgage-backed securities (CMBS) loans, and a 4 percent decrease in life company loans.

THIRD-QUARTER 2025 ORIGINATIONS UP 18 PERCENT FROM THE SECOND QUARTER OF 2025

On a quarterly basis, third quarter originations for retail properties increased 141 percent compared to the second quarter of 2025. There was a 76 percent increase in originations for hotel properties, a 67 percent increase for office properties, and a 12 percent increase for multifamily properties. Originations for health care properties decreased 6 percent and industrial properties decreased by 17 percent 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 percent, loans for depositories increased 36 percent, originations for CMBS loans increased 31 percent, and loans for investor-driven lenders increased 14 percent. The dollar volume of loans for life insurance companies decreased by 22 percent.

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.