Ratings agencies are giving the CMBS outlook a mixed report card, with Moody’s Investors Service saying Monday that property-level fundamentals will continue recovering unevenly across property sectors and metropolitan areas. At Morningstar Credit Ratings, the forecast calls for a payoff rate between 50% and 60% in 2017 as heavily leveraged legacy CMBS loans face difficulties refinancing.
- Despite looming risk retention rules set to go into effect Dec. 24, many in the industry are looking ahead to 2017 with more optimism.
- Yet the new rules are also getting credit for spurring issuance in the second half of the year as lenders look to push deals through ahead of the deadline.
- One factor that should help issuance rise in the coming year is the high volume of commercial real estate debt that is maturing and needs to be refinanced.
“CMBS is proving yet again that the market may be down, but it is by no means out as a key capital source for commercial real estate. Despite looming risk retention rules set to go into effect Dec. 24, many in the industry are looking ahead to 2017 with more optimism.”
A commercial building/property inspector will be able to help you discover underlying risks that may be hidden in potential properties in which you may invest. Call Allison Property Inspections with your questions about our detailed process for inspecting commercial, industrial, retail or multi-family buildings in Los Angeles, Riverside or Orange Counties.