Commercial Real Estate Investment & Lending Activity Continue to Rise

Executive Summary

• Commercial real estate investment volume increased by 29% year-over-year in Q4 to $172 billion. Annual volume totaling $499 billion was 22% higher than in 2024.
• The CBRE Lending Momentum Index rose by 0.48 points year-over-year in Q4 to 1.2, as lending conditions continued to improve.
• Private investors were the biggest buyers, accounting for $92 billion of Q4 investment volume, followed by institutional investors with $27 billion.
• Inbound cross-border investment fell by 37% year-over-year in Q4 to $6.4 billion.
• Alternative lenders were the biggest non-agency lenders, accounting for 40% of Q4 loan closings, followed by banks (35%) and life companies (19%).
• Commercial and multifamily loan spreads were unchanged from Q3. Their loan-to-value (LTV) ratios rose by 9 and 3 basis points (bps), respectively, from a year ago. Spreads are based on loans with a permanent, fixed-rate, seven-to-10-year term and a 55-to-65% LTV ratio.