CCIM Institute
Posted December 27th 2012
Commercial real estate capital markets remain stable despite rising uncertainty about the looming fiscal cliff, according to a recent Marcus & Millichap report. CMBS issuance volume this year is expected to top 2011s by more than $17 billion, but is not expected to return to a healthy level until 2013.
Overall lending volume rose 25 percent between 2Q11 and 2Q12, according to the report. Loans for retail properties increased 56 percent, lending in the hospitality and multifamily sectors rose 22 percent and 19 percent respectively, and office lending increased 15 percent. The industrial sector saw the only lending decline in this cycle, falling 5 percent.
Other highlights in the report include:
- National banks share of originations increased to 30 percent.
- Fannie Mae and Freddie Mac are expected to lend about $45 billion by year-end.
- Nearly 55 percent of loans were resolved this year from an estimated default total of $375 billion.
Capital Markets Remain Healthy
Commercial real estate capital markets remain stable despite rising uncertainty about the looming fiscal cliff, according to a recent Marcus & Millichap report. CMBS issuance volume this year is expected to top 2011s by more than $17 billion, but is not expected to return to a healthy level until 2013.
Overall lending volume rose 25 percent between 2Q11 and 2Q12, according to the report. Loans for retail properties increased 56 percent, lending in the hospitality and multifamily sectors rose 22 percent and 19 percent respectively, and office lending increased 15 percent. The industrial sector saw the only lending decline in this cycle, falling 5 percent.
Other highlights in the report include: