Commercial and multifamily mortgage borrowing posted a strong rebound in the first quarter of 2026, with overall originations volume jumping 52% year over year as lenders and borrowers pushed through a wave of refinancings and acquisitions across multiple property sectors.
According to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, borrowing activity also increased 39% from the fourth quarter of 2025.
“Commercial and multifamily mortgage originations posted a strong rebound in the first quarter, increasing substantially compared to both a year ago and the previous quarter,” Reggie Booker, MBA’s associate vice president of commercial/multifamily research, said in the report. He pointed to improving market conditions, refinancing demand, and renewed transaction activity as key drivers behind the surge.
Multifamily properties led much of the growth. Origination volume for multifamily loans climbed 76% year over year, while hotel properties saw a 59% increase and industrial properties rose 57%, according to MBA data. Office lending volume increased 30% from a year earlier, while retail originations edged up 16%.
Health care properties were the lone major category to decline, with originations dropping 40% compared to the first quarter of 2025.
On a quarterly basis, originations for industrial properties rose 82% from the fourth quarter of 2025. Hotel lending increased 51%, multifamily lending rose 40%, and office lending climbed 39%.
Among capital sources, investor-driven lenders posted the largest annual increase, with originations up 127% from a year earlier. Depositories increased lending activity by 49%, while life insurance companies boosted originations 44%.
Commercial mortgage-backed securities (CMBS) lending rose 45% year over year, while government-sponsored enterprises Fannie Mae and Freddie Mac recorded a more modest 8% increase in multifamily lending activity.
The increase in borrowing activity may also signal improving confidence among commercial lenders after a prolonged slowdown tied to elevated interest rates and tighter credit conditions throughout much of 2024 and 2025.
The latest data comes as MBA continues forecasting a broader recovery in commercial real estate finance activity this year. Earlier this year, the association projected total commercial mortgage origination volume would rise 27% in 2026 to approximately $805.5 billion, with multifamily originations expected to reach nearly $399 billion.
The rebound also arrives as the industry works through a large wave of loan maturities across the commercial real estate sector, particularly in office and multifamily assets, where many borrowers are seeking refinancings after years of elevated rates and valuation pressure. Recent MBA data showed delinquency rates have also been rising in several commercial property categories, particularly office and multifamily loans.
