Commercial real estate loan closings fell almost 21% year-over-year in the second quarter, the result of a pandemic-related temporary freeze in lending and transaction markets between mid-March through early April, according to new figures in a CBRE index.

Liquidity returned to the market later in the quarter, and multifamily-agency and certain industrial deals "were bright spots" during the three-month period, the CBRE Lending Momentum Index found. Other sectors suffered, however, as lenders grew more selective in their deal and property-type financing choices.

"While we have seen a steady improvement in the number of loan applications over the past five weeks, we anticipate that commercial mortgage markets will remain muted over the near-term, especially for retail and hospitality properties, as well as value-added deals, which face the greatest underwriting challenges," Brian Stoffers, head of debt and structured finance for capital markets at CBRE, said in a prepared statement.