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Mortgage Market Bounces Back in 2012?

NEWARK-So says a recent Prudential Real Estate Investors report that predicts the commercial mortgage market will begin to rise in 2012, with volumes reaching around $3.3 trillion by 2015.

By Debra Hazel | Updated on January 25, 2011

NEWARK-Borrowers take note–there is a light at the end of the long financing tunnel, so says “Deleveraging the Commercial Mortgage Market: How Much Further to Go?,” a research report issued by Prudential Real Estate Investors. But it will take a little bit longer.

By using a model calculating the ratio of commercial mortgages as a share of Gross Domestic Product, the company predicts that the commercial mortgage market will shrink by more than $200 billion for another year, bottoming out at about $2.9 trillion in late 2011, and then beginning to rise in 2012 with volumes reaching around $3.3 trillion by 2015. “The availability of debt is a critical element of the commercial real estate market,” says Jack Taylor, managing director at PREI. “Closely monitoring debt allows us to gauge the health of the market and plan a strategy accordingly. As commercial mortgage volume nears the bottom of the current cycle, we will begin to see activity pick up.”

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