{"id":1004758087,"date":"2025-05-15T04:34:22","date_gmt":"2025-05-15T12:34:22","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004758087"},"modified":"2025-05-15T04:34:24","modified_gmt":"2025-05-15T12:34:24","slug":"cre-lending-climbs-despite-market-jitters","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/","title":{"rendered":"CRE Lending Climbs Despite Market Jitters"},"content":{"rendered":"\n

Despite an economy that often seems to be going in every direction except forward, commercial real estate lending swelled in the first quarter, buoyed by larger financing volumes and strong activity from banks, according to the latest Lending Momentum Index report from CBRE.<\/p>\n\n\n\n

Despite this possibly surprising rush of lending, the report cautions that federal policy and economic uncertainty around Treasury yields remain significant factors.<\/p>\n\n\n\n

The Index tracks CBRE-originated U.S. commercial loan closings, which rose by 13 percent from the fourth quarter of 2024 and by 90 percent year-over-year.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO<\/strong>: Regional Banks\u2019 Quiet Comeback<\/a><\/p>\n\n\n\n

\n\n\n\n

In that set of mortgage closings, loan spreads tightened substantially in the first quarter, averaging 183 basis points, which was down by 29 basis points year-over-year.<\/p>\n\n\n\n

\"Chart<\/a>
Banks, CMBS lead in Q1 loan closings. Chart courtesy of CBRE Capital Markets, CBRE Research, Q1 2025 (reflects non-agency commercial\/multifamily loans).<\/em><\/figcaption><\/figure>\n\n\n\n

Office financing experienced a notable rebound, as several major office SASB deals reached successful closures, according to a company statement. Meanwhile, data center construction loans remain a focal point, supporting a wide array of tenants beyond conventional models.<\/p>\n\n\n\n

Banks predominated in the non-agency loan closings tracked by CBRE, with a 34 percent share, versus just 22 percent in the previous quarter.<\/p>\n\n\n\n

The second-most active lenders were CMBS conduits, at a 26 percent share, compared with just 9 percent a year prior. As of the end of the first quarter, private-label CMBS issuance was 132 percent higher than the previous year.<\/p>\n\n\n\n

Life insurance companies<\/a>, meanwhile, maintained their steady 21 percent share of non-agency loan closings.<\/p>\n\n\n\n

Alternative lenders such as debt funds and mortgage REITs made up the remaining 19 percent of non-agency loan closings, a major drop from their 48 percent a year prior. The CBRE report commented that \u201cWhile remaining active, debt funds are exercising caution in the current market and facing increased competition\u2026.\u201d<\/p>\n\n\n\n

\"Chart<\/a>
Commercial real estate investment volume (excludes development site transactions). Chart courtesy of CBRE Research, MSCI Real Assets, Q1 2025<\/em><\/figcaption><\/figure>\n\n\n\n

The average underwritten cap rate rose by 24 basis points quarter-over-quarter to 6.1 percent, but debt yields jumped by 90 basis points to 10.3 percent in the first quarter.<\/p>\n\n\n\n

Investment, international-style<\/h2>\n\n\n\n

On the investment front, CBRE reported that CRE investment volume rose to $88 billion in the first quarter, a 14 percent year-over-year increase. <\/p>\n\n\n\n

Led by the industrial sector, inbound cross-border investment increased by 7 percent in the first quarter, to $4 billion. The outsized deal that drove this was the Norwegian sovereign wealth fund\u2019s acquisition of a $1.1 billion stake in the Canadian pension plan\u2019s U.S. logistics portfolio.<\/p>\n\n\n\n

\"Chart<\/a>
Cross-border investment volume ($ billions) by country of origin, trailing four quarters ending in Q1 2025. Chart courtesy of CBRE Research, MSCI Real Assets, Q1 2025.<\/em><\/figcaption><\/figure>\n\n\n\n

Across CRE product types, Canada remained the leading inbound cross-border investor, at 35 percent of the total, or $7.3 billion across four quarters.<\/p>\n","protected":false},"excerpt":{"rendered":"

Larger financing volumes and strong activity from banks are behind this trend, according to CBRE. <\/p>\n","protected":false},"author":882,"featured_media":1004758109,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,23891,21742],"tags":[32789],"class_list":["post-1004758087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-national","category-latest","tag-cbre"],"acf":[],"yoast_head":"\nCRE Lending Climbs Despite Market Jitters - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Commercial real estate lending swelled in the first quarter, buoyed by larger financing volumes and activity from banks, according to CBRE.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CRE Lending Climbs Despite Market Jitters\" \/>\n<meta property=\"og:description\" content=\"Commercial real estate lending swelled in the first quarter, buoyed by larger financing volumes and activity from banks, according to CBRE.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-15T12:34:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-15T12:34:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"607\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/\",\"name\":\"CRE Lending Climbs Despite Market Jitters - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png\",\"datePublished\":\"2025-05-15T12:34:22+00:00\",\"dateModified\":\"2025-05-15T12:34:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"description\":\"Commercial real estate lending swelled in the first quarter, buoyed by larger financing volumes and activity from banks, according to CBRE.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png\",\"width\":800,\"height\":607,\"caption\":\"Banks, CMBS lead in Q1 loan closings. Chart courtesy of CBRE Capital Markets, CBRE Research, Q1 2025 (reflects non-agency commercial\/multifamily loans).\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CRE Lending Climbs Despite Market Jitters\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\",\"name\":\"Scott Baltic\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96\",\"caption\":\"Scott Baltic\"},\"description\":\"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"CRE Lending Climbs Despite Market Jitters - Commercial Property Executive","description":"Commercial real estate lending swelled in the first quarter, buoyed by larger financing volumes and activity from banks, according to CBRE.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/","og_locale":"en_US","og_type":"article","og_title":"CRE Lending Climbs Despite Market Jitters","og_description":"Commercial real estate lending swelled in the first quarter, buoyed by larger financing volumes and activity from banks, according to CBRE.","og_url":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2025-05-15T12:34:22+00:00","article_modified_time":"2025-05-15T12:34:24+00:00","og_image":[{"width":800,"height":607,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png","type":"image\/png"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/","url":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/","name":"CRE Lending Climbs Despite Market Jitters - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png","datePublished":"2025-05-15T12:34:22+00:00","dateModified":"2025-05-15T12:34:24+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"description":"Commercial real estate lending swelled in the first quarter, buoyed by larger financing volumes and activity from banks, according to CBRE.","breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png","width":800,"height":607,"caption":"Banks, CMBS lead in Q1 loan closings. Chart courtesy of CBRE Capital Markets, CBRE Research, Q1 2025 (reflects non-agency commercial\/multifamily loans)."},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/cre-lending-climbs-despite-market-jitters\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"CRE Lending Climbs Despite Market Jitters"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/05\/Lender-composition-CBRE.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004758087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/882"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004758087"}],"version-history":[{"count":7,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004758087\/revisions"}],"predecessor-version":[{"id":1004758121,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004758087\/revisions\/1004758121"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004758109"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004758087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004758087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004758087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}