Momentum Builds in Q3 CRE Market
Commercial lending gained ground in Q3 as rates held steadier and spreads narrowed, signaling wider borrower confidence heading into 2026.
NEW YORK — U.S. commercial real estate lending picked up sharply in the third quarter as steadier interest rates and narrower credit spreads brought more investors back into the market.
New CBRE research shows its Lending Momentum Index climbed to the highest level since 2018, driven by stronger permanent financing and a jump in loan closings across core property types. Multifamily remained the most competitive sector, with spreads tightening year-over-year as agency lenders increased activity.
“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 U.S. and Canada Capital Markets at CBRE.
Banks, major lenders and debt funds expanded their share of new originations, signaling a wider return to lending after a prolonged slowdown. The findings suggest borrowing is still cautious but becoming easier as 2026 approaches.
Source: World Property Journal (11/25/25) Gerrity, Michael
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