MBA CREF25 Takeaways – Key Market Insights for 2025

The MBA CREF25 conference provided valuable insights into capital markets, lending trends, and investment sentiment for the year ahead. Below are the key takeaways shaping commercial real estate finance in 2025:

Market Liquidity & Optimism

• The overall lending market remains highly liquid, with most industry segments anticipating increased production volumes in 2025.
• Borrowers are adjusting to the new normal for interest rates, acknowledging strong market liquidity and lender appetite for transactions.

Spreads & Credit Market Conditions

• Spreads have narrowed significantly over the past 6-12 months due to increased liquidity in credit markets.
• Agency lenders are seeing historically tight spreads, making their products more price competitive than LifeCo, bank, and CMBS lenders.

LifeCo & CMBS Market Trends

• Life insurance companies (LifeCos) have increased their loan allocations due to tightened bond spreads, making commercial and multifamily loans more attractive than high-quality bonds.
• CMBS originations are expected to grow significantly, with 2025 volume projected to increase 33% from 2024 levels.

Bank & Debt Fund Activity

• The bank lending space remains uneven—some banks expect higher production in 2025, while others are still addressing portfolio challenges.
• Debt funds are highly active, with increased investor appetite for alternative investments and an improving CLO market.

Insurance Market & Servicing Challenges

• Commercial property insurance costs are stabilizing, with less dramatic year-over-year premium increases.
• Servicing teams are dedicating significantly more resources to insurance renewals and compliance, leading to staff reallocations and expansions.

Underwriting & Risk Management

• Thorough underwriting remains critical, even with high liquidity in the market.
• Financial and occupancy misrepresentations have increased the need for more frequent and in-depth site inspections, particularly in multifamily assets.
• Rising insurance costs have led to deferred maintenance issues, causing some properties to decline in condition.

As we move further into 2025, these insights from MBA CREF25 highlight a market in transition, with increasing liquidity, shifting lending dynamics, and evolving risk considerations. While optimism remains strong, staying disciplined in underwriting and adaptable to changing conditions will be key to success in the months ahead. Slatt Capital remains committed to providing strategic guidance and market expertise to help our clients navigate the opportunities and challenges of the current lending environment.