Is there enough first-position debt capital to meet the needs of expiring commercial property loans in the next few years?
In the larger universe of non-bank lenders, Mortgage Bankers Association data shows mortgage expirations of $151 billion in 2012, dropping to $108 billion in 2013 and and $109 billion in 2014 before hitting $163 billion in 2015, $215 billion in 2016 and $199 billion in 2017 (see chart).
Regarding the supply of debt capital to refinance these loans, Jamie Woodwell, MBA vice president of commercial and multi-family research and economics, noted that lending sources increased their holdings by $8 billion to a total of $2.4 trillion in the first quarter, compared to the fourth quarter of 2011. That means there has been an overall net increase in lending in the market, whereby the amount of originations and refinancing exceed that of loans that are being paid off.
Read more...Capital Shortfall: Is There Sufficient Senior Debt Financing? | Commercial Property Executive
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