DALLAS, Texas—Industrial actual property lending continued to rebound within the second quarter of 2025, supported by exercise from banks and various lenders, although warning persists because of authorities coverage and financial uncertainty impacting treasury yields, in keeping with the most recent analysis from CBRE.
The CBRE Lending Momentum Index, which tracks the tempo of CBRE-originated business mortgage closings within the U.S., rose by 45 % year-over-year. This enhance got here regardless of a 6 % decline from the primary quarter of 2025 as tariff bulletins and coverage uncertainty weighed on borrowing circumstances in April and Might. The index rebounded strongly in June to shut the quarter at a worth of 275, properly above the five-year pre-pandemic common of 229.
Industrial mortgage mortgage spreads widened to a median of 193 foundation factors (bps) within the second quarter of 2025, up by 10 bps in comparison with the identical interval final yr and the primary quarter of 2025. Multifamily mortgage spreads narrowed by 22 bps to 150 bps, pushed primarily by tighter company mortgage pricing.
“Regardless of early challenges within the second quarter, the capital markets have demonstrated exceptional resilience and stabilization. Uncertainty surrounding tariffs and their potential influence on pricing and danger premiums initially brought on a brief pause in exercise; nevertheless, as readability improved and tariffs have been delayed, credit score spreads tightened to extra balanced ranges, and capital returned with risk-adjusted anticipated returns aligned to present market circumstances. Industrial and multifamily property, significantly these priced at a reduction to substitute value, proceed to attract robust investor curiosity,” stated James Millon, president and co-head of capital markets, United States and Canada, CBRE.
“Wanting forward, we anticipate sustained momentum as market contributors adapt to evolving circumstances. Whereas headwinds persist, the energy and suppleness of capital markets, supported by strong pipelines, place us for continued progress in transaction volumes throughout each gross sales and debt.”
Different lenders, together with debt funds and mortgage REITs, led CBRE’s non-agency mortgage closings within the second quarter of 2025, capturing a 34 % share, up from 32 % in the identical interval final yr. Debt funds drove a lot of this enhance with lending volumes rising 89 % quarter-over-quarter and 52 % year-over-year.
Banks held the second-largest share of non-agency mortgage closings at 24 %, a lower from 29 % a yr in the past. Regardless of the smaller market share, banks’ origination quantity grew by 17 %, indicating a robust reentry into the market.
Life firms accounted for a 23 % share of non-agency mortgage quantity within the second quarter of 2025, down from 29 % a yr in the past however up from 21 % within the first quarter of 2025.
CMBS lenders additionally noticed elevated exercise, with their share rising to 19 %, up from 9% a yr in the past. Lending volumes from CMBS lenders greater than tripled year-over-year, fueled by lively private-label CMBS issuance.
By way of key metrics, tighter company borrowing spreads within the second quarter of 2025 led to barely looser underwriting requirements as mortgage constants fell by 21 bps and mortgage rates of interest by 16 bps quarter-over-quarter, respectively. The typical Mortgage-to-Worth Ratio (LTV) rose to 63.3 %, up from 62.2 % within the first quarter of 2025, signaling a barely much less conservative lending setting as debtors assumed extra debt.
Authorities company lending for multifamily property reached $28.9 billion within the second quarter of 2025, reflecting a 31 % quarter-over-quarter and a 43 % rise year-over-year. CBRE’s Company Pricing Index, which tracks common mounted company mortgage charges for 7–10-year everlasting loans, fell to five.7 %, down 13 bps from the earlier quarter and by 28 bps from the identical interval final yr.
