Harrisburg, PA – March 12, 2025 – Commercial real estate agents in central Pennsylvania have witnessed firsthand the dynamic shifts in the market over the past few years. In 2025, the commercial real estate market is poised for significant activity and growth. According to a recent CoStar article by Mark Heschmeyer, the Mortgage Bankers Association (MBA) is projecting a significant rise in commercial property lending this year, following a robust fourth quarter in 2024. Mortgage originations for commercial and multifamily properties surged 84% year-over-year and 30% quarter-over-quarter, leading MBA to forecast a 16% increase in total lending to $583 billion in 2025.
A key driver of this growth is the $957 billion in commercial mortgages set to mature this year, representing 20% of the total $4.8 trillion outstanding balance. This substantial volume of maturing loans presents a myriad of refinancing opportunities, which is expected to bolster the market further.
However, challenges remain. Interest rate volatility, slower economic growth, and a softer job market are factors that could impact the lending landscape. Despite the Federal Reserve’s decision to cut short-term rates in 2024, long-term rates increased, preventing some property owners from refinancing as anticipated.
Zach Wyatte, Esq., Senior Associate at Landmark Commercial Realty, noted, “The significant volume of maturing loans in 2025 presents a unique opportunity for refinancing and growth in the commercial real estate market. Despite some challenges, the overall outlook remains positive due to increased confidence in the market, likely fueled by improved liquidity and a more stable rate environment.”
As the industry navigates through 2025, the commercial real estate sector in central Pennsylvania and beyond is poised for significant activity and growth, driven by these evolving market conditions. Investors and stakeholders should seize this moment to explore refinancing options, diversify their portfolios, and capitalize on the promising trends in commercial property lending. The time to act is now, as the market conditions are ripe for strategic investments and growth.