Buoyed by stabilizing capital market conditions, total commercial real estate (CRE) mortgage borrowing and lending hit an estimated $706 billion in 2025, according to the Mortgage Bankers Association (MBA).

That robust total marks a 40% increase from the $505 billion transacted in 2024 and a 65% gain from 2023’s total of $429 billion.

Dedicated commercial mortgage bankers accounted for $606 billion of CRE loans closed last year, representing a 48% year-over-year increase for that specialized market segment. The other $100 billion came from more diversified small and midsized depositories.

“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,” stated Reggie Booker, MBA’s associate vice president of commercial research.

Though Booker observed certain market challenges, most notably around refinancing and asset valuations, he believes “the significant pickup in activity underscores the market’s ability to adapt to a higher-rate environment.”

Drilling down among property types, multifamily properties posted an estimated $413 billion of total lending, with $299 billion of that figure directly tracked by dedicated mortgage bankers.

First liens accounted for 95% of mortgage bankers’ closed dollar volume, per the MBA report.

Depositories served as the largest funding source for CRE mortgage debt, followed by Fannie Mae and Freddie Mac. Other leading capital sources noted by the MBA included private-label commercial mortgage-backed securities, investor-driven lenders, life insurance companies and pension funds, as well as the Federal Housing Administration and Ginnie Mae.