The Mortgage Bankers Association (MBA) has released its quarterly survey of commercial and multifamily mortgage originations for 1Q 2025, finding “a strong rebound” year-over-year. Loans for office properties, in particular, soared sharply.
Originations of all types climbed 42% from their level in 1Q 2024. However, as compared to 4Q 2024, the category this quarter slumped 40%.
Nevertheless, the MBA said this year’s results were a positive sign. The report details changes in the volume of loans originated and breaks the data down by property and investor type.
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“The first quarter of the year is typically the slowest, so this level of activity, particularly the strong gains in office, health care, and multifamily lending, signals renewed momentum and growing confidence in key segments of the market,” said Reggie Booker, associate vice president of commercial research. Despite market volatility, he noted, borrowers and lenders were still able to complete deals.
Notably, there was a 205% year-over-year increase in the dollar volume of office loans, accompanied by a 44% increase from 4Q 2024. Healthcare dollar volume was up 159% for the year but down 34% for the quarter, multifamily up 39% but down 41% versus the previous three months and hotels were up 30% but down 64% for the quarter. Loans for industrial properties fell 2% year-over-year and 43% for the quarter, while retail loans slipped 3% on an annual basis and 66% in the quarter.
All types of lenders increased their activity in 2024. Over the year, loans from depositories rose 83%, life insurance companies' went up by 61%, CMBS' shot up 37%, government-sponsored enterprises Fannie Mae/Freddie Mac's rose by 20%, and investor-driven lenders' inched up by 12%.
In contrast, the dollar volume of loans for each type fell in 1Q 2025 compared to 4Q 2024. The drop was 6% for CMBS, 39% for depositories, 40% for life insurance companies, 51% for GSEs and 49% for investor-driven lenders.
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