Very interesting REJBlog guest post by Matt Ward, senior vice president, The Alter Group covers the state of commercial real estate lending.
Guest post by Matt Ward, senior vice president, The Alter Group
At its 2007 peak, the CMBS market reached $230 billion in sales and backed 40 percent of all commercial real estate lending. While we are a long way from that crest, CMBS has fought its way back.
After posting $48 billion in 2012, issuances could hit $80 billion in 2013 and $100 billion in 2014. Part of the reason is that there is a shortage of bonds in the market because so much of the 2007 stock matured last year. All of this is good news for the industry because the simple truth is that we can’t function without CMBS.
The bond market remains the principal way that developers and owners convert temporary financing (often three-year construction loans) into permanent financing. In addition to office, sectors like retail and hotel use it as their primary source of debt. Typically…
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