Commercial real estate loan activity jumps in the second quarter

August 4, 2026 - 23:43

Commercial mortgage activity saw a notable surge during the second quarter, with lending volumes climbing into double-digit percentage territory. The latest data from the CBRE Lending Momentum Index points to a clear rebound in borrowing for income-producing properties, signaling that capital markets are loosening after a prolonged stretch of tight conditions.

The index, which tracks the volume of commercial real estate loans closed, rose sharply compared to both the previous quarter and the same period last year. While the report does not break out every property type, the gains appear broad-based, touching office, industrial, retail, and multifamily assets. Lenders are showing more willingness to underwrite new deals, especially for well-leased buildings in prime locations.

Several factors are driving the shift. Interest rates have stabilized somewhat from their recent peaks, giving borrowers and lenders a clearer picture of debt service costs. At the same time, banks and other financial institutions are working through their existing portfolios, freeing up capacity for new originations. Private lenders and debt funds remain active as well, often filling gaps where traditional banks are still cautious.

The uptick is a welcome sign for a sector that has been under pressure from high financing costs and muted transaction activity. While it is too early to call it a full recovery, the second quarter data suggests that the worst of the lending drought may be behind the market. If rates hold steady and economic conditions do not deteriorate, the momentum could carry into the second half of the year.