WASHINGTON, DC—An analysis of commercial mortgage-backed securities debt in the Washington, DC area shows that there will be a significant rise in the amount of loans coming due beginning in the next 18 months.
Brokerage firm JLL calculates that approximately $5 billion in CMBS debt will be coming due on local commercial properties in 2017 alone, about four times the amount projected to be due this year.
The debt problem worsens when you consider D.C., Maryland and Virginia and not just the District and the suburbs. Credit ratings firm Morningstar puts the 2017 CMBS number for that larger region at nearly $10 billion, according to the Washington Post.
Despite the significant CMBS debt load, financial analysts believe building owners will have options. Frank A. Innaurato, a managing director at Morningstar, says, “Major destination or gateway markets like D.C. remain favorable from a lending and refinance perspective versus secondary and tertiary markets.”
Wesley C. Boatwright, managing director of JLL's capital markets group, says, “The idea that there is wave of CMBS maturities is not in itself a distressed situation. You will not see people giving properties back to lenders at the level that you did in 2008, 2009 and 2010,” Boatwright says. See story in the Washington Post.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
