After weathering a challenging 2023, the commercial real estate (CRE) market demonstrated remarkable resilience in 2024, with lending volumes climbing to $498 billion—a 16% increase from the previous year. While this figure remains 39% below the record-setting 2022 levels, the upward trajectory signals a significant market stabilization according to the latest data from the Mortgage Bankers Association (MBA).
Multifamily Powers the Recovery
The multifamily sector emerged as the dominant force in CRE lending last year, accounting for an impressive $326 billion of the total volume. This sector alone represented approximately 65% of all CRE lending activity, highlighting its crucial role in the market’s recovery momentum.
Dedicated mortgage bankers showed particular strength, originating $411 billion in loans—a robust 34% increase compared to 2023. These specialized lenders demonstrated their ability to navigate market challenges effectively, serving as both direct originators and intermediaries in the evolving lending landscape.
Capital Sources Reshaping the Market
Depository institutions maintained their position as the leading capital providers in the CRE space during 2024. Following closely behind were life insurance companies and pension funds, which continued to seek stable returns through commercial mortgage investments. The private-label commercial mortgage-backed securities (CMBS) market also showed signs of revival, alongside consistent participation from government-sponsored enterprises Fannie Mae and Freddie Mac. Investor-driven lenders rounded out the top five capital sources, reflecting the diverse financing ecosystem supporting commercial real estate.
Looking Ahead: The $957 Billion Question
The market faces a significant test in 2025, with an estimated $957 billion in CRE mortgage maturities coming due. This substantial refinancing wave will likely determine the trajectory of market performance in the coming year, as borrowers and lenders navigate the evolving interest rate environment.
Industry experts point to this refinancing demand as a critical factor that will influence capital availability and pricing. The improved lending activity in 2024 suggests growing confidence among market participants, potentially positioning the industry to handle the upcoming maturity wave more effectively than previously anticipated.
Market Implications
The 2024 lending rebound represents more than just a statistical recovery—it reflects renewed confidence in the fundamentals of commercial real estate despite lingering economic uncertainties. With nearly $1 trillion in loans requiring refinancing in 2025, both lenders and borrowers are preparing for an active year ahead.
The strong performance of mortgage bankers, who closed $411 billion in loans while also facilitating $303 billion as intermediaries and handling $247 billion in investment sales transactions, demonstrates the sector’s adaptability and resilience. This comprehensive involvement across the CRE finance ecosystem positions these specialized firms to play a pivotal role as the market continues its recovery journey.
As the industry navigates the substantial refinancing demands ahead, the patterns established in 2024 suggest a more stable foundation for commercial real estate finance—one that could support sustainable growth even as market participants adapt to the post-pandemic economic landscape.
About MylesTitle Founder, Owner & Chief Title Insurance Officer
Myles Lichtenberg, Esq., is a recognized leader in the real estate title insurance industry. Since 1979, Mr. Lichtenberg, and his amazing team, have conducted well over 27,000+ real estate title transactions and over $16 Billion Dollars of settled transactions, involving just about every type and variety of real estate configuration – from commercial to residential, from complex to simple and from single-state to multi-state portfolios.
