CMBS Article

Real estate goes as the financing goes.  Here is a Bloomberg article on commercial mortgage backed securities (CMBS).  CMBS originations are expected to reach $80 billion in 2013 and over $100 billion in 2014.  This is below the amount of CMBS issued between 2005 and 2007 levels, but well above the amount issued for each of the past five years.  When there is money available real estate deals get done.   Here is an idea on lenders' market sentiment:

Investor demand for commercial real estate should grow along with a steadily improving economy, even if interest rates climb, according to the report. The reason, in part, is a rising level of comfort among lenders, including commercial banks, insurers and private investment firms, said Mitchell Roschelle, PwC’s national real estate practice leader and co-chairman of the study, based on responses from more than 1,000 property investors and lenders.

“Some of the credit-quality concerns that people had with real estate have evaporated with time,” he said in a telephone interview from New York, where the professional-services firm is based. “We’ve worked through those problems, and the other thing is what used to be headwinds have changed to tailwinds, in many cases, in the eyes of real estate market participants.”

The horses are at the starting gate.  And away they go....