First-quarter commercial real estate production from other lenders rose 42% from a year earlier, but was down 40% from the fourth quarter, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

Reggie Booker, the MBA’s assistant vice president of commercial research, said results showed a strong rebound from a year earlier.

“The first quarter of the year is typically the slowest, so this level of activity — particularly the strong gains in office, health care and multifamily lending — signals renewed momentum and growing confidence in key segments of the market,” Booker said.

“Despite ongoing volatility in interest rates and the broader financial markets, borrowers and lenders are finding opportunities to move new deals forward,” he said.

Credit unions also outperformed others for multifamily loans. NCUA data showed they produced $2.3 billion in the first quarter, double the amount from 2024’s first quarter and up 4% from the fourth quarter.

For other lenders, the MBA found multifamily production rose 39% from a year ago and fell 41% from the fourth quarter.

The MBA’s report released May 15 showed loans backed by offices were particularly strong. Production tripled from a year earlier and it was the only category to show an increase from the fourth quarter, rising 44%.

Origination trends for other property types were:

• Health care properties rose 159% from a year earlier and fell 34% from the fourth quarter.
• Hotel properties rose 30% from a year ago and fell 64% from the fourth quarter.
• Industrial properties decreased 2% from a year ago and fell 43% from the fourth quarter.
• Retail property loan originations fell 3% from a year ago and fell 66% from the fourth quarter.

At credit unions, commercial production was stronger than overall loan originations in the first quarter, which were $137.7 billion, up 21% from a year earlier.

However, for all 12 months of 2024, other lenders increased commercial real estate production three times faster than credit unions.

MBA data released in April showed lenders originated $498 billion in commercial RE loans in 2024, up 16% from $429 billion in 2023 and down 39% from $816 billion in 2022 when the Fed began raising rates.

NCUA data showed all credit unions produced $3.19 billion in commercial real estate loans in 2024, up 4.8% from 2023.

Contact Jim DuPlessis at [email protected].