Commercial real estate liquidity levels and lender diversity have reached new highs even in the face of persistent macroeconomic uncertainty. According to the latest data from JLL, the number of debt quotes available to private capital investors has soared 74% since the market bottomed out in the fourth quarter of 2023. This surge is not just a sign of a market rebound—it also reflects a more balanced and competitive lending environment, as banks, insurance companies, and other capital sources ramp up their activity across a range of property types.
The easing of debt pricing has played a crucial role in this renewed momentum. After peaking at 5.0% for the 10-year Treasury yield and 5.4% for SOFR rates in late 2023 and mid-2024, both benchmarks have since fallen significantly—by 60 and over 100 basis points, respectively. This drop has made borrowing more attractive and accessible, fueling the uptick in lending activity.
Lauro Ferroni, head of Capital Markets Research, Americas for JLL, told GlobeSt that the current environment is especially favorable for private investors seeking loans under $25 million, a segment that serves as a proxy for the broader health of the market.
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Banks, in particular, are defying the narrative of retrenchment that dominated headlines in 2023 and early 2024. While overall bank lending did slow during that period, Ferroni pointed out that activity has rebounded sharply since the third quarter of 2024. This turnaround is partly due to increased loan payoffs and a temporary reprieve from stricter reserve requirements under the Basel Endgame framework, which has freed up more capital for commercial real estate lending.
In fact, the number of banks quoting on loans over $100 million has jumped from 110 in the second half of 2023 to 172 over the past six months, signaling renewed confidence even at the upper end of the market.
Insurance companies are also stepping up their presence, particularly in floating-rate transactions. In the second quarter of 2025, quotes for floating-rate loans from insurers were up 60% compared to the end of 2023, while fixed-rate quotes rose by 28%. The most dramatic increases have been in office (up 400%), living (up 183%), and retail (up 158%) sectors, reflecting insurers’ efforts to deploy more capital and meet ambitious lending targets for the year.
“Some insurance companies have been a little bit more aggressive. They’ve eased some credit standards to be more competitive,” Ferroni noted, adding that insurers are also expanding into bridge loans and targeting asset classes that are back in favor, such as industrial and retail properties.
Despite broader economic volatility—including market swings following the April 2025 announcement of increased tariffs on U.S. trading partners—commercial real estate lending has remained resilient. Ferroni observed that, while transaction volumes have seen some deceleration, debt market momentum continues to outpace investment sales. Nationally, transaction volumes grew 16% in 2024, with double-digit growth persisting into 2025, even as the investment sales market faces headwinds.
A notable trend shaping the lending landscape is the shift toward shorter loan durations. Since 2021, about 74% of commercial real estate lending volume has consisted of loans with terms of five years or fewer, up from 55% in the preceding six years.
This reflects borrowers’ preference for flexibility amid fluctuating interest rates and the expectation of future refinancing opportunities. “You’re going to have more refinancing activity going forward, just because there are more shorter-term loans in the system. That’s going to create more junctures where it brings parties together to refinance, to restructure, to think about how they want to approach their borrowing going forward,” Ferroni explained
JLL’s latest data also reveals a significant resurgence in lending activity for larger commercial real estate loans, underscoring the depth and breadth of current market liquidity. Over the past six months, 172 different banks have quoted on loans exceeding $100 million, a dramatic increase from just 110 banks active in this space during the second half of 20231. This jump is particularly noteworthy because it signals not only a return of confidence among major lenders but also a broadening of participation across the banking sector, including the largest money center banks.
The significance of these numbers extends beyond simple volume. The robust competition among a growing pool of banks for large-scale loans means borrowers have more options, better pricing, and more flexible terms. It also reflects a market where concentration risk is low, as exposure to commercial real estate remains a small portion of the largest banks’ overall lending portfolios. “There hasn’t really been a concentration risk related to commercial real estate,” Ferroni said. “Yes, their activity was more subdued for a number of reasons, but that has now started to turn around.”
The renewed appetite for large loans is a strong indicator of institutional confidence, suggesting that the commercial real estate debt market is not only recovering but also thriving at all levels—from private capital to large institutional transactions.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
