Total commercial real estate (CRE) mortgage borrowing and lending jumped 16% year over year in 2024 to $498 billion, according to a report from the Mortgage Bankers Association (MBA).

Last year’s mortgage activity was up from 2023’s $429 billion, but still 39% below the record levels of $816 billion in 2022 at the height of the pandemic construction boom.

MBA’s survey found that dedicated commercial mortgage bankers accounted for $411 billion of loans closed, while smaller and mid-sized depositories are estimated to make up the difference in the $498 billion total.

Multifamily properties accounted for the lion’s share of the lending, with an estimated $326 billion of total lending going toward the sector, and $219 billion directly tracked by dedicated mortgage bankers. First liens accounted for 92% of the mortgage bankers’ dollar volume closed.

“Commercial real estate lending rebounded to $498 billion in 2024, up 16% from the prior year and driven largely by multifamily activity and continued strength from dedicated mortgage banking firms, which closed $411 billion in loans,” said Reggie Booker, MBA’s associate vice president of commercial real estate research. “While still below 2021’s record originations activity, the market showed renewed momentum. With an estimated $957 billion in CRE mortgage maturities coming due this year, demand for refinancing and new capital will be key drivers of market activity.”