According to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, originations of commercial and multifamily mortgage loans increased 48% from Q1 of 2025 and 66 percent from the second quarter of 2025 compared to the same period last year.
“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 VP 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%, highlighting renewed interest from both traditional institutions and private capital.”
Commercial/multifamily loan volumes increased overall due to an increase in originations for office, healthcare, and industrial buildings compared to a year ago. The dollar volume of office property loans increased by 140%, health care property loans increased by 77%, industrial property loans increased by 53%, and retail property loans increased by 30%. Compared to the second quarter of 2024, originations for hotel property loans fell 30%, and originations for multifamily properties fell 35%.
The dollar volume of loans originated for depositories rose by 108% year over year among all investor types. Investor-driven lender loans increased by 93%, life insurance company loans increased by 72%, government-sponsored enterprise (GSE) loans (Fannie Mae and Freddie Mac) increased by 59%, and commercial mortgage-backed securities (CMBS) loans decreased by 10%.
Comparing Q2 of 2025 to the first quarter, there was a 102% increase in industrial property originations on a quarterly basis. In comparison to the first quarter of 2025, originations for retail properties increased by 58%, originations for health care properties increased by 90%, while originations for hotel properties remained steady. Compared to Q1 of 2025, office property originations fell 18%, while multifamily originations fell 41%.
Among investor types, the dollar volume of loans for investor-driven lenders rose 107% between the first and second quarters of 2025, while loans for life insurance companies increased 71%, GSE originations increased 54%, and depositories increased 36%. For CMBS, the dollar volume of loans fell by 20%.
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