WASHINGTON, DC–Depending on who is counting and by what methodology, CMBS originations for the first quarter of this year are down anywhere from 18% to 34% compared to the same period in 2016.
It is easy to attribute the drop to Dodd Frank's risk retention rule that went into effect at the start of the year but the story is more complicated than that.
The CMBS market is doing better than many thought it would at the outset of risk retention, Lisa Pendergast, executive director of the Commercial Real Estate Finance Council, or CREFC, tells GlobeSt.com. Investors, especially B piece buyers, have responded well to the offerings that comply with the rule that have come to market, she says. “Spreads have done well compared to last year,” she says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
