CMBS Market Back in 2011

CMBS activity is way up with $6.5 billion in new securitization coming to market in the last few weeks.  The activity to date in February is 2/3rds of the total CMBS deals offered for all of 2010.  Additionally, Freddie Mac brought two multifamily offerings totaling $1.86 billion to market. 

This is reminiscent of 2006 and 2007 when CMBS offerings peaked, which has the commercial real estate market both bullish and concerned.  The monstrous increase in CMBS loan originations is another sign that liquidity has returned to the markets.  However, such an increase in a short period of time is also raising anxiety that the commercial market is being sustained by overly aggressive lenders.   

So much for the doomsayers who have said that the commercial real estate market would be dead for years.  And given the fact that there’s been so little new supply coming on the market over the last two years, I think we’ll see too many dollars chasing too few properties.  

More detail from Mark Heschmeyer at the link

CoStar News – 2011 Brings a Resurgent CMBS Market – More CRE Liquidity