Total commercial real estate (CRE) mortgage borrowing and lending reached an estimated $498 billion in 2024, a 16% increase compared with 2023 but a decrease of 39% compared with 2022, according to the Mortgage Bankers Association.
The association’s latest Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation tracked $411 billion in loans closed by dedicated commercial mortgage bankers in 2024 – a 34% increase compared with 2023.
Activity from smaller and mid-sized depositories is estimated from other data sources to arrive at the $498 billion estimate for the total market.
“Commercial real estate lending rebounded to $498 billion in 2024, up 16 percent from the prior year and driven largely by multifamily activity and continued strength from dedicated mortgage banking firms, which closed $411 billion in loans,” says Reggie Booker, associate vice president of commercial real estate research for the MBA, in a statement. “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.”
Among different property types, multifamily properties saw the highest volume last year, with an estimated $326 billion of total lending and $219 billion directly tracked by dedicated mortgage bankers. First liens accounted for 92 percent of the mortgage bankers’ dollar volume closed.
Dedicated mortgage banking firms reported closing $411 billion of CRE loans in their own names and serving as intermediaries on $303 billion. Firms reported serving as investment sales brokers for $247 billion of deals.
Depositories were the leading capital source for CRE mortgage debt, followed by life insurance companies and pension funds, private label CMBS, government-sponsored enterprises (Fannie Mae and Freddie Mac), and investor-driven lenders.
Photo: Abbe Sublett
