Fear Gives Way to Greed

By Joe Caton

Scarce capital no longer to blame for investors’ indecision

Not only have signs of life returned to commercial real estate finance, but there are also signs that the capital markets are on the mend. As 2010 began, analysts called for about $20 billion in new issuance of commercial mortgage-backed securities (CMBS). But by the beginning of the second quarter, those estimates rose to $25 billion, and may rise even further.

CMBS issuance is a major barometer of real estate finance because it is one of the most orderly and low-cost funding sources available. With the winding down of the Term Asset-Backed Loan Facility over the next two months, investors are looking to CMBS for stable government-free opportunities.

[BLOGGER COMMENT: As liquidity and leverage return to commercial real estate – now the question will be: “Who will blink first… Sellers? or the Opportunity Fund buyers that have raised trillions and deployed a small fraction of their allotted capital?]



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