Total Commercial Real Estate Borrowing and Lending Increases 16% in 2024

On Thursday, the Mortgage Bankers Association (MBA) released its Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation report, estimating that total commercial real estate (CRE) mortgage borrowing and lending reached $498 billion in 2024. That marks a 16% increase from $429 billion in 2023 but a 39% decline from the $816 billion recorded in 2022.

Among property types, multifamily properties saw the highest lending volume in 2024, with an estimated $326 billion in total originations. Of that, $219 billion was directly tracked by dedicated mortgage bankers. First liens made up 92% of the mortgage bankers’ dollar volume closed.

Dedicated mortgage banking firms reported closing $411 billion in CRE loans under their own names and acting as intermediaries on another $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.

Commenting on the report, MBA Associate Vice President of Commercial Real Estate Research Reggie Booker said:

“Commercial real estate lending rebounded to $498 billion in 2024, up 16% from the prior year and driven largely by multifamily activity and continued strength from dedicated mortgage banking firms, which closed $411 billion in loans. 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.”