Commercial real estate lending surged in the first quarter of 2025, driven by higher financing volumes and robust activity from banks, though caution persists due to government policy and economic uncertainty impacting Treasury yields, according to the CBRE.
The CBRE Lending Momentum Index, which tracks the pace of CBRE-originated commercial loan closings in the United States, increased by 13 percent from fourth quarter 2024 and 90 percent year-over-year, signaling a resilient recovery in lending activity. The index surpassed 300 for the first time since first quarter 2023, driven by strong loan closings in January and February, with a first quarter 2025 close at 292 after a slight March slowdown due to market volatility.
Commercial mortgage loan spreads tightened significantly in first quarter 2025, averaging 183 basis points, down 29 basis points year-over-year and on
