$875B in CRE mortgages mature in 2026

What's happening

The Mortgage Bankers Association estimates that $875 billion, or 17% of the $5.0 trillion in outstanding commercial and multifamily mortgages, is scheduled to mature in 2026. That is 9% below the $957 billion scheduled for 2025.

Lending has picked up to meet that need. MBA reported second-quarter 2026 originations were 16% higher than a year earlier, with CMBS and bank lending leading the gains.

• 2026 maturities: $875 billion.
• 2025 maturities: $957 billion.
• Q2 originations: Up 16% year over year.
• By lender: CMBS up 68%, depositories up 61%, life companies down 27%.
• Industrial: Up 6% year over year and 38% from Q1.

What it means for owners, tenants and investors

Refinancing is available, but on different terms than the loans being retired, and the Fed's September hike raises costs further. Owners with 2026–2027 maturities should start conversations early, test values at current rates and prepare for possible paydowns. Buyers may find motivated sellers where loans cannot be refinanced at existing leverage. In Southern California, many industrial owners financed at low rates before 2022 and will face higher coupons even with stronger rents.

Owners who extended loans in 2024 and 2025 are now reaching the end of those extensions. Lenders have become more willing to lend, but they size loans to today's income and rates, which can leave a gap between the old balance and the new proceeds.

Capital is flowing again, but the loans maturing now were underwritten for a lower-rate world.

What to watch

Third-quarter origination data and extension activity will show whether lenders keep kicking maturities forward or push resolutions.

Photo: Kelly Sikkema / Unsplash.