**CRE Lending Momentum Reaches 7-Year High in Q3 2025**
Commercial real estate lending showed strong improvement in the third quarter of 2025, according to CBRE. The CBRE Lending Momentum Index, which tracks the pace of CBRE-originated commercial loan closings in the U.S., surged 112% year-over-year to reach 1.04 at the end of Q3 — matching levels last seen in 2018. The impressive growth was largely fueled by a 36% year-over-year increase in permanent loan financing, with a significant uptick in activity noted in September.
Stabilizing borrowing costs and narrower credit spreads played a key role in closing the pricing gap between buyers and sellers, ultimately boosting transaction volumes across multiple asset classes.
“We’re seeing a broad recovery in investment sales across all major asset classes, led by high-conviction sectors like multifamily and industrial,” said James Millon, President and Co-Head of Capital Markets, U.S. & Canada at CBRE.
Millon also noted a dramatic increase in office financing and sales volumes, driven by solid fundamentals in top-tier assets located in high-growth markets. “Construction activity also remains robust, especially in sectors such as build-to-core multifamily developments and large-scale data centers,” he added. “We expect this momentum to continue into 2026.”
This strong performance signals a resilient turnaround in the CRE financing landscape, with capital continuing to flow into key growth sectors.
