Next year the Kroll Bond Rating Agency expects private label CRE securitization issuance to total between $150 billion and $165 billion, compared to $149 billion anticipated for 2021 which would be more than double 2020's volume ($62.2 billion) and significantly above 2019 issuance of $116.1 billion.
The third quarter, in fact, saw an uptick in CMBS loan origination activity, accounting for 17.6% of loan closings, an increase over the prior quarter as well as year-over-year. Around $77.1 billion in CMBS loans have been issued so far this year, according to CBRE.
There are several reasons for the steady forecast for next year, despite the current uncertainty imposed by the Omicron variant. In general, COVID infection rates are slowing while economic activity continues to increase and interest rates remain historically low.
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