Commercial Mortgage Debt Outstanding Increased in Q1

The level of commercial/multifamily mortgage debt outstanding increased by $46.8 billion (1.0 percent) in the first quarter of 2025, according to the Mortgage Bankers Association’s recent Commercial/Multifamily Mortgage Debt Outstanding quarterly report.

Total commercial/multifamily mortgage debt outstanding rose to $4.81 trillion at the end of the first quarter. Multifamily mortgage debt alone increased $19.9 billion (0.9 percent) to $2.16 trillion from the fourth quarter of 2024.

Despite lower origination volumes, the overall level of commercial mortgage debt rose in the first quarter of 2025. This increase reflects the extended duration of outstanding loans and the continued appetite for real estate investment across key investor groups.

Commercial banks continue to hold the largest share (38 percent) of commercial/multifamily mortgages at $1.8 trillion. Agency and GSE portfolios and MBS are the second-largest holders of commercial/multifamily mortgages (22 percent) at $1.07 trillion. Life insurance companies hold $752 billion (16 percent), and CMBS, CDO and another other ABS issues hold $642 billion (13 percent). Many life insurance companies, banks and the GSEs purchase and hold CMBS, CDO and other ABS issues. These loans appear in the report in the “CMBS, CDO and other ABS” category.

Changes in commercial mortgage debt outstanding

In the first quarter, CMBS, CDO and other ABS issues saw the largest gains in dollar terms in their holdings of commercial/multifamily mortgage debt—an increase of $16.2 billion (2.6 percent). Bank and thrifts increased their holdings by $13.1 billion (0.7 percent), agency and GSE portfolios and MBS increased their holdings by $7.5 billion (0.7 percent), and life insurance companies increased their holdings by $6.1 billion (0.8 percent).

In percentage terms, REITs saw the largest increase—4.0 percent—in their holdings of commercial/multifamily mortgages. Conversely, private pension funds saw their holdings decrease 10.6 percent.

—Posted on July 24, 2024