Debt origination in first quarter 2025 outperformed first quarter 2024 across all property types, according to Newmark’s first quarter 2025 State of the U.S. Capital Markets report.

Commercial real estate debt origination maintained strong momentum in first quarter 2025, though volumes remain well below pre-pandemic norms. Origination activity rose 42 percent year-over-year compared to first quarter 2024. While the number of active lenders remains meaningfully lower, Newmark’s estimate for the first quarter is likely to be revised upward. Originations increased across all major sectors, with office, senior housing and hotels leading the way. Bank lending was particularly notable — only 4 percent below first quarter averages from 2017 to 2019. This acceleration in activity comes as the market prepares to absorb $2 trillion in debt maturities from 2025 to 2027. Notably, 37 percent of this maturing debt was originated when the federal funds rate was below 25 basis