According to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, commercial and multifamily mortgage loan originations increased 18% from Q2 of 2025 and 36% from the same period last year.
“Commercial and multifamily borrowing has now increased for five straight quarters on both a quarterly and annual basis,” said Reggie Booker, MBA’s Associate VP of Commercial/Multifamily Research. “Lending activity increased last quarter across most major property types and capital sources, led by particularly strong growth in office, retail, and hotel properties. While some sectors, such as health care and industrial, saw slower activity, overall volumes reflected improving sentiment as property values stabilized and loans reaching maturity were refinanced.”
Overall commercial/multifamily loan volumes increased as a result of an increase in originations for office, retail, hotel, and multifamily properties over the previous year. The dollar volume of loans for office properties increased by 181% year-over-year (YoY), retail premises by 100%, hotel properties by 66%, multifamily properties by 27%, and industrial properties by 5%. Compared to Q3 of 2024, overall loan originations for healthcare properties fell by 43%.
Investor-driven lenders saw an 83% YoY increase in the dollar amount of loans they originated. Loans for depositories lenders increased by 52%, loans for government-sponsored enterprises (GSEs, such as Fannie Mae and Freddie Mac) increased by 40%, loans for commercial mortgage-backed securities (CMBS) increased by 5%, and loans for life companies decreased by 4%.
Q3 Originations Jump from Q2 2025
Originations for retail premises rose by 141% in the third quarter of 2025 when compared to the second quarter. Originations for hotel properties increased by 76%, for commercial properties by 67%, and for multifamily properties by 12%. Compared to the second quarter of 2025, originations for industrial properties fell by 17% and for health care properties by 6%.
The dollar volume of loans for GSEs climbed by 37%, loans for depositories by 36%, originations for CMBS loans by 31%, and loans for investor-driven lenders by 14% between the second and third quarters of 2025. The amount of money lent to life insurance businesses fell by 22%.
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