Strong Lending Growth Signals Recovery Ahead
The commercial real estate market is showing clear signs of recovery, and the numbers, contained in these 8 key data points, tell an exciting story of resilience and renewed confidence.
In other words, The CRE Market is back.
- Lending Activity Surges in 2025:
After a challenging 2024, CRE lending is experiencing a remarkable rebound that’s capturing industry attention.
The growth trajectory is nothing short of impressive:
- CRE CLO issuance is exploding with 274% year-over-year growth, projected to reach $32.5 billion in 2025 compared to just $8.7 billion last year. This nearly quadrupling of volume demonstrates strong investor appetite and confidence in commercial real estate debt.
- CMBS and agency lending are gaining solid momentum as well. CMBS conduit issuance is expected to grow 6.4% to $35 billion, while single-borrower large loans (SBLL) are projected to jump 28% to $90 billion. Meanwhile, both Freddie Mac and Fannie Mae lending are each expected to reach $65 billion, representing nearly 19% growth from 2024.
- Competitive Rates Fuel Activity: Borrowers are benefiting from a range of competitive financing options, with agency loans leading the way at approximately 5.7% average rates. This affordability factor is driving increased transaction activity across multiple property sectors.
- Market Stabilization Takes Hold: While Q2 property prices showed some softness across sectors, the bigger picture reveals encouraging stabilization trends. Industrial properties are leading the charge, with value-weighted industrial prices showing 4% year-over-year growth and already resuming modest appreciation after brief 2023 declines.
- Multifamily is rebounding strongly, now posting 5% year-over-year gains after bottoming out at -17%. Even the office sector, while still facing headwinds, has dramatically slowed its decline pace from -28% to just -4% year-over-year, suggesting potential appreciation could return by early 2026.
- Regional Strength Emerges: The South region is demonstrating particular resilience, with industrial properties driving positive performance. Across all regions, industrial real estate continues to outperform, reflecting the sector’s fundamental strength and ongoing demand from e-commerce and logistics growth.
- Green Shoots of Recovery: Industry leaders are noting encouraging signs of market recovery. Blackstone President Jonathan Gray has highlighted “early green shoots” in logistics and multifamily transaction volumes, while slowing new construction is helping balance supply and demand dynamics. With the Federal Reserve’s recent interest rate adjustments and improving market confidence, CRE debt markets appear positioned for an even stronger second half of 2025.
The Bottom Line: The commercial real estate market is demonstrating remarkable resilience and adaptability. Strong lending growth, competitive rates, and stabilizing property values across key sectors all point to a market that’s not just recovering, but positioning itself for sustainable growth ahead. For investors, lenders, and industry professionals, the message is clear: the CRE recovery is underway, and the fundamentals are strengthening
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MylesTitle is an amazingly unique boutique real estate title insurance firm with a hand-picked, curated team of professionals.
Quarterbacked under the watchful eye of long-time industry pro Myles Lichtenberg, Esq. our team of paraprofessionals handle every aspect of your transaction with the precision of a finally tuned drill team. We interface with some of the globes top attorney’s, paraprofessionals, bankers, fund managers, developers, and highly skilled real estate authorities. They demand the very best, and our team answers the call!
More specifically, MylesTitle’s team provides Five-Star Service from initial intake through closing. No detail is left unattended to. Our Senior Team of professionals understands complex, high-value, and sometimes multi-state transactions, like no other.
