New data from the Mortgage Bankers Association (MBA) is estimating commercial real estate mortgage borrowing and lending in 2024 totaled $498 billion, up by 16% from the $429 billion in 2023 but down by 39% from the $816 billion recorded in 2022.
MBA tracked $411 billion of loans closed by dedicated commercial mortgage bankers in 2024, up 34% from the $306 billion reported in 2023. Activity from smaller and mid-sized depositories is estimated from other data sources to arrive at the $498 billion total estimate.
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% of the mortgage bankers’ dollar volume closed.
Dedicated mortgage banking firms reported closing $411 billion of commercial real estate 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 the sector’s mortgage debt last year, followed by life insurance companies and pension funds, private label CMBS, the government-sponsored enterprises, and investor-driven lenders.
“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,” said Reggie Booker, MBA’s associate vice president of commercial real estate research. “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.”
