CMF Newslinks Archive

“Market momentum has continued in 2017, with strong demand from borrowers and a strong appetite to lend by lenders, especially of loans going to government-related entities.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“Investors will continue to place a premium on transit-served locations where a live-work-play environment exists or can be developed. These locations tend to attract demand generators in the form of key office tenants and superior amenities, which lead to rental-growth premiums and strong asset performance.”–Avison Young Principal and Managing Director John Kevill

“I’m not really sure what’s going to end it–but something will, and it will cause a downward adjustment in real estate values.”–Pearlmark Real Estate CEO Stephen Quazzo.

“Loans backed by commercial and multifamily properties continue to perform extremely well. For most lender types–including banks, life insurance companies, Fannie Mae and Freddie Mac–delinquency rates are at or near their all-time lows.”–MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

“The [commercial mortgage-backed securities] market didn’t provide for much beach time this summer–the combined pricing volume for July and August represented about a third of year-to-date volume.”–Kroll Bond Rating Agency Senior Director Larry Kay.

“After hitting a post-election pause button, the industry seems to have digested and even shrugged off a flurry of policy announcements, concluding that many of the previously touted reforms will not be implemented. Instead, commercial real estate investors are assuming the U.S. economy will continue to slowly and steadily expand in coming quarters.”–Ten-X Chief Economist Peter Muoio.

“Many will be forced to abandon their homes and rent an apartment; businesses will need to look for new and/or temporary office space, but retailers may suffer more so and will be slow to reopen their businesses.”–Victor Calanog and Barbara Byrne Denham in a Reis special report: Houston after Harvey.

“The office sector and commercial real estate in general are not immune to the effects of globalization and technological innovation. The world is transitioning into a more distributed, automated and digital economy, which impacts how occupiers conduct business and think about their workplaces. This transition may have profound implications on the role and intrinsic value of property.”–Avison Young Chair and CEO Mark Rose.

“Imposing the National Flood Insurance Program structure which was designed for “one borrower, one home, one policy” on commercial and multifamily transactions is difficult for borrowers and lenders. The current limit of $500,000 for commercial and multifamily properties is insufficient based on the value of many of the properties in question.”–From a Mortgage Action Alliance “Call to Action” about re-authorizing the National Flood Insurance Program, which is set to expire on September 30.

“Multiple factors came into play to drive commercial mortgage investment returns in the second quarter. Differences in treasury yields, a decrease in term premiums for shorter mortgages and the continued decline in credit spreads all contributed to the second-quarter Giliberto-Levy Index results.”–John B. Levy & Co. President John Levy.