Macroeconomic Troubles May Stymie CMBS Pipeline
San Francisco Business Journal reports: Though individual commercial real estate markets are recovering at their own paces, the future of an important source of acquisition and debt capital that has been fueling the entire nation’s turnaround has been put into question. A recent article in the San Francisco Business Journal stated that, “Some of the positive momentum that had been reviving the CMBS market has hit a snag…For the past six months the CMBS market was recovering nicely: spreads were tightening, new issuances were increasing, and delinquency levels were dropping. But recently this trend has reversed.”
Real Capital Analytics Managing Director Dan Fasulo expressed trepidation over the future of CMBS, stating that, “A lot of the property owners and potential buyers that own large assets in places like San Francisco are counting on a CMBS market that is continuing to improve. Any disturbance to the CMBS market would impact the ability to finance acquisitions.” He did admit, however, that it may be too early to tell what direction the capital market will take in coming months: “If we have learned anything it’s that the capital market don’t always run in synch with underlying economic factors…They just do what they want.”
View the full article on San Francisco Business Journal: Macroeconomic Troubles May Stymie CMBS Pipeline
Articles related to this topic:
'Extend & Pretend' Protecting Asset Values - Hurting Long-Term Prospects?
Low-Cost Loans Help Fill Stalled Development Site in Queens, NY
For Vegas, Today's Pain Will Be Tomorrow (or Many Years from Now's) Gain
Positive Momentum of Seniors Housing & Care Sector Sparks Investors to Strategize
Commercial Real Estate Sales Stall
Can CRE Activity Sustain Through the Macroeconomic Shocks?
CMBS Pipeline Narrowing after US T-Bond Downgrade
Tampa's Multifamily Market Posts Strong First Half
US Commercial Loan Originations Highest since 2007
Posted by: Nina Turner