CRE debt rose to $4.81 trillion in Q1 2025, supported by strong lending activity and conservative structures. With attractive yields and steady refinancing demand, the asset class offers compelling opportunities.
In Q1 2025, commercial and multifamily mortgage debt rose 1% to $4.81 trillion, led by REITs and securitizations such as Commercial Mortgage-Backed Security (CMBS) as well as Commercial Real Estate Collateralized Loan Obligations (CRE CLOs), signaling strong debt fund activity. Banks—especially large ones—increased lending, while only minor lender types saw declines. Overall, the data points to continued liquidity in CRE debt markets, with attractive yields, conservative structures, and a robust pipeline of refinancing opportunities ahead.
The Mortgage Bankers Association released its 1Q25 Commercial/Multifamily Mortgage Debt Outstanding Report on June 17, 2025.
The level of commercial/multifamily mortgage debt outstanding increased by $46.8 billion (1%) in the first quarter of 2025, bringing the total debt outstanding to $4.81 trillion. Within that, multifamily mortgage debt alone rose by $19.9 billion (0.9%) to $2.16 trillion from the fourth quarter of 2024. This implies that core commercial mortgage debt rose by $26.9 billion (1%) to $2.65 trillion compared to the prior quarter.
REITs, along with CMBS/Collateralized Debt Obligation (CDO, and other Asset Backed Security (ABS) issuers, had the largest quarter-over-quarter increases in total commercial/multifamily mortgage debt outstanding — up 4.0% and 2.6%, respectively. This increase underscores the growing importance of debt funds in commercial real estate lending markets.
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