CMBS Reverses Decade-Long Downward Trend

Q3 represented “a significant turning point for the CMBS market,” says MBA’s Jamie Woodwell.

WASHINGTON, DC—The third quarter was notable in the commercial/multifamily mortgage space for one key development. That was the reversal of a decade-long downward trend in CMBS’ holdings, which rose by 0.8% or $3.6 billion from Q2, according to Mortgage Bankers Association data. Overall, Q3 saw commercial/multifamily mortgage debt outstanding increase by $45.4 billion, or 1.5%, to $3.11 trillion.

“The third quarter marks a significant turning point for the CMBS market,” says Jamie Woodwell, VP of commercial real estate research at MBA. “With only a few exceptions, since 2008, the balance of commercial and multifamily mortgages held in CMBS has declined each quarter. That years-long trend ended this quarter.”