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According to the latest quarterly report from the Mortgage Bankers Association (MBA), commercial and multifamily mortgage debt outstanding saw a $37.7 billion increase, or 0.8%, in Q2 of 2023.

The total amount of commercial and multifamily mortgage debt outstanding reached $4.6 trillion by the end of Q2, with multifamily mortgage debt alone rising by $26.4 billion to reach $2.03 trillion from Q1 2023.

MBA’s head of commercial real estate research, Jamie Woodwell, stated that this growth in CRE debt was driven by an increase in holdings from life companies, GSEs (government-sponsored enterprises), banks and other depositories.

Woodwell also noted that while there has been a significant decrease in new originations compared to last year due to decreased demand for loans, this has resulted in fewer loan payoffs which has helped maintain or even grow overall credit levels.

This data highlights the continued strength and stability of the CRE market despite challenges faced during these unprecedented times.