The Mortgage Bankers Association expects a 31% increase in commercial and multifamily lending this year.

Commercial and multifamily mortgage bankers are projected to close $578 billion of loans backed by income-producing properties in 2021, up from the $442 billion loan volume seen in 2020.

“Commercial and multifamily real estate markets are moving past the pain that the COVID-19 pandemic caused in 2020,” said Jamie Woodwell, vice president for commercial real estate research at MBA. “There remain significant differences by property type, but incomes have rebounded strongly, and investor interest in real estate and real estate finance is robust. The result is strong property appreciation and increased transaction activity, both of which is fueling financings.”