Search
 

Fitch: CMBS Stable to Improving

NEW YORK CITY-Fitch's 2007 outlook categorizes retail and industrial as stable and office, multifamily and hotel as improving.

By Katie Hinderer | Updated on December 13, 2006

NEW YORK CITY-New York-based Fitch Ratings presented its 2007 CMBS outlook on Wednesday. Patty Bach, head of Fitch’s CMBS research outlined the last year and gave Fitch’s outlook for 2007. “Fitch’s overall 2007 outlook for CMBS is stable to improving,” Bach said.

By the end of December, CMBS issuance is expected to top $200 billion in 2006, a 20% increase from 2005 when issuance increased 80% from the year prior. While 2006 rose significantly less than 2005, the numbers were still positive, a trend Fitch expects to see in 2007. The company predicts another 20% increase next year.

Bach said 2007 issuance will be impacted by “the sectors ability to attract capital and increase competition for debt and equity products which should keep cap rates relatively low. Any upward pressure on cap rates is expected to be outpaced by continued improvement in property fundamentals, therefore property valuations are expected to remain relatively high which should translate into more property transactions and thus an increased need for financing.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.