Commercial and multifamily loan originations continued climbing in the second quarter, ending the period 16% above year-ago levels and 12% higher than the first quarter, according to data released Thursday by the Mortgage Bankers Association (MBA).

The quarterly increase was a welcome rebound after the first quarter’s originations had fallen 30% from the fourth quarter after ending 2025 with what MBA had called a “much stronger year” than 2024.

“Commercial and multifamily mortgage lending maintained its upward trajectory in the second quarter as improving capital markets and stronger transaction activity supported higher origination volumes,” said Reggie Booker, MBA associate vice president of commercial research.

Quarterly gains were widespread across property sectors. Industrial properties led with a 38% increase, followed by office properties (23%), multifamily (15%) and retail (3%). The only decreases were in hotels, which fell by 36%, and healthcare properties, which dipped 50%.

“Office lending was strong, with increases in originations on an annual and quarterly basis, signaling renewed financing activity in a sector that has faced significant headwinds,” Booker said. He added that commercial mortgage-backed securities (CMBS) lenders and banks posted particularly strong gains.

Despite uneven lending activity across some capital sources and property sectors, the overall increase points to continued improvement in commercial real estate finance markets, Booker said.

Between investor types, there was also a wide dollar volume origination difference year over year. CMBS loans jumped by 68%, loans for depositories increased 61% and investor-driven lender loans rose 18%. But government-sponsored enterprises Fannie Mae and Freddie Mac saw a 17% decrease and life insurance company loans fell 27%.