Commercial mortgage originations climb 16% in the second quarter
“Although activity remains uneven across some capital sources and property sectors, the overall increase in lending points to continued improvement in commercial real estate finance markets.”
Office sector signals a turn amid broad property gains
Year-over-year, retail led all property types with a 61% jump in dollar volume, followed by office at 47%, hotel at 19%, multifamily at 8%, and industrial at 6%. Health care was the lone category to contract, falling 19% compared with Q2 2025.
Office’s 47% annual gain is among the more consequential data points in the report. The sector has faced sustained financing pressure since 2020, and its rebound — combined with a 23% quarterly increase from Q1 2026 — marks a meaningful shift in lender appetite.
Booker described the growth as signaling “renewed financing activity in a sector that has faced significant headwinds,” though he did not call it a full recovery.
These figures track with MBA’s February 2026 forecast projecting that commercial and multifamily lending would sustain its upward momentum through 2026, with total origination volume expected to reach $805.5 billion for the year. That’s roughly 27% above 2025’s estimated $633.7 billion.
