Jul 2026
CRE Lending Activity Improves While Remaining Selective
Commercial and multifamily loan activity has improved sharply from a year ago, but the recovery is selective and favors property types with durable demand and clearer income visibility.
The commercial real estate lending environment has shown measurable improvement compared with the prior year. According to the Mortgage Bankers Association (MBA), commercial and multifamily mortgage loan originations increased significantly in the first quarter of 2026 on a year-over-year basis, reflecting a broader rebound in lending activity despite typical seasonal slowdowns from the *previous quarter.
Increases in loan volume were observed across several property types, including healthcare, retail, hospitality, industrial, and multifamily assets. Office properties continued to follow a different trajectory, with lower relative activity levels.
At the same time, lending conditions remain structured and selective. Data from MBA indicates growth in both depository lending and investor-driven capital sources, suggesting that capital availability has expanded in certain segments of the market. Industry commentary also highlights that lenders are placing emphasis on factors such as cash flow stability, business plan clarity, and alignment with current valuation expectations when evaluating *financing opportunities.
These dynamics point to a lending environment that is more active than in the recent past, while still reflecting a disciplined approach to capital allocation.
*Source / Read more: Mortgage Bankers Association – Commercial/Multifamily Borrowing Increased 52% in Q1 2026
Additional context: Multifamily Executive – Multifamily, CRE Originations Poised to Climb in 2026
