Commercial real estate investors are well aware of the excesses that went on in the heyday of the commercial mortgage-backed securities (CMBS) market several years ago.
But oh, are they eager to see that market back on its feet.
The majority of CRE investments during the busiest years of the last decade were financed by the CMBS issues, which totaled almost $231 billion in new securities at the market’s peak in 2007.
This year, when many of those 2007 five-year term loans are coming due, the CMBS market has issued just $18 billion in new securities. By the end of 2012, the market will probably issue no more than $35 billion, almost $200 billion short of the 2007 mortgage volume that’s going to be rolling over in the next few years, according to Joe McBride, an analyst with Trepp LLC, which monitors the commercial real estate finance markets.
Read more...Commercial real estate industry still awaits CMBS return | Finance & Commerce