Commercial/Multifamily Lending Surges 42% Year-Over-Year in Q1 2025

Interest rate driven lending woes have been cast as the main culprit behind the sputtering commercial real estate market. But first quarter stats tell a different, if not entirely resolute story.

According to recently released reporting data, lending in on office, health care, and multifamily assets was 42% in Q1 compared to the same period last year. Conversely, originations fell 40% from Q4 of 2024. Ultimately, it’s a case of good news-bad news, but industry analysts still see the year-over-year gains as clear evidence of renewed momentum.

Office property loans led surge, rising by 205%, followed by health care, up 159%, and multifamily, up 39%. Hotel property loans also climbed 30%. Industrial and retail originations, however, dipped slightly, dropping by 2% and 3% respectively compared to Q1 2024.

And while originations were down from Q4 2024 for most property types, office loans managed a 44% quarter-over-quarter increase.

This robust year-over-year growth suggests a market regaining confidence, setting the stage for continued recovery in 2025.

In the meantime… Looking for leasing or sales representation for your commercial property? CORE-CRE can help!

For more details, contact Daniel Bahr: 323.646.5938 | daniel@core-cre.com