We’re pleased to share the latest Third Quarter Review from John B. Levy & Company, as the G-L 2 Index reports strong loan growth, improving credit quality, and continued strength in multifamily an...
G-L 2 Index Reports Explosive Growth in Loan Volume and Optimistic Year-End Outlook
John B. Levy & Company — January 19, 2026 —
The G-L 2 has released its Third Quarter Review, highlighting a surge in loan‑tracking activity and projecting a positive finish to the year. Despite challenges in select real estate sectors, overall indicators point to a high‑growth environment for the index.
Rapid Growth
The volume of loans tracked by the G‑L 2 is on an “explosive track.” Driven by the addition of several large new participants, loan volume is expected to increase 25% between now and year-end. Total loans tracked are projected to exceed $110 billion by the close of Q4‑2025.
Improving Credit Quality
Credit quality also strengthened this quarter:
Credit event frequency improved from 3.44% to 3.04%.
Sector Spotlight: Office vs. Multi‑Family
The review underscores a widening performance gap between major real estate sectors:
Office Loans: Continue to face significant challenges, posting a high incidence rate of 7.73%.
Multi‑Family Loans: Remain highly resilient with a notably low non‑performing rate of 1.36%.
Strong Returns for Investors
Investment performance remains robust:
Average return across all investments: 1.83%
Leveraged total loans: Outperformed with a return of 3.19%
About the Giliberto‑Levy Indexes
The G-L Commercial Mortgage Performance Index (G‑L 1) tracks investment results for fixed‑rate senior mortgages originated by life insurance companies, GSEs, pension funds, and investment managers. G‑L 1 has been published continuously since 1993, with a return inception date of January 1, 1972.
The G‑L High‑Yield Real Estate Debt Index (G‑L 2) measures performance for mezzanine loans, leveraged whole loans, and B‑notes. G‑L 2 production began in 2018, with a return inception date of January 1, 2010.
Contact
For more information or to subscribe, please visit www.jblevyco.com or contact:
John Levy – (804) 500‑9025 | jlevy@jblevyco.com
Julia Grant – (804) 500‑9026 | jgrant@jblevyco.com Source:
