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BRE’s Lending Momentum Index, a gauge of loan closings, surged 112 % year‑over‑year to 1.04 at the close of Q3 2025—its strongest level since 2018. The jump was largely driven by a 36 % rise in permanent loan financing, with September showing the most robust activity. Commercial mortgage spreads averaged 197 bps, up 14 bps from a year earlier, while multifamily spreads narrowed to 141 bps, a 27 bps decline, reflecting tighter agency pricing. These figures apply to fixed‑rate, 7‑10‑year loans with 55‑65 % loan‑to‑value ratios.

    James Millon, CBRE’s President & Co‑Head of Capital Markets, U.S. & Canada, said the market is rebounding across key sectors, especially multifamily and industrial. “Core capital is returning selectively, shaping equity pricing and building momentum,” he noted. He added that office financing and sales volumes have “surged by multiples,” and construction remains strong, driven by demand for build‑to‑core multifamily projects and large data centers. CBRE projects this trend to continue into 2026.

    Alternative lenders now dominate non‑agency closings, holding 37 % of the market—up from 34 % a year ago—thanks largely to debt funds, which saw a 68 % YoY volume increase. Banks captured 31 % of the share, a sharp rise from 18 % last year, fueled by a 167 % jump in origination volume, signalling a robust re‑entry. CMBS lenders grew to 17 % from 5 % a year earlier, while life insurers fell to 16 % from 43 % last year.

    Lending conditions have improved: loan constants dropped 20 bps QoQ, mortgage rates fell 28 bps, and average LTV rose to 63.8 %, indicating a slightly less conservative stance. Agency lending for multifamily reached $44.3 billion in Q3, up 53 % QoQ and 57 % YoY. CBRE’s Agency Pricing Index for 7‑10‑year permanent loans fell to 5.6 %, a 13 bps decline from Q2 and 27 bps from a year earlier.