Commercial Financing Returns

October 25, 2010

CMBS issuance rising again

Refinancing capacity is slowly returning to retail real estate, as investors regain interest in the CMBS market. Issuance of U.S. commercial mortgage-backed securities is on track to total between $10 billion and $15 billion this year, research firm Investcap Advisers expects. That compares to $12 billion in 2008 and $3 billion in 2009. The average annual issuance in the U.S. between 1999 and 2004 was $65 billion. The years 2005, 2006 and 2007 saw a combined $602 billion of mortgage debt issuance, or an average of $200 billion per year.