Thursday, January 13, 2011

A Look at CMBS Numbers, Past, Present & Future

The numbers don't lie! CMBS (Commercial Mortgage Backed Securies) are what keep the money flowing for big commercial mortgages. We are seeing a return of the CMBS!!! That means money has already started to flow for income producing properties. To truly appreciate the LACK of capital since the collapse of Lehman 28 months ago, here are the numbers for CMBS loans:

2006 -$190B USD
2007- $270B USD
2008- $   18B USD
2009- $     9B USD
2010- $     7B USD

 Sobering numbers, eh? 2011 should see up to TEN TIMES the activity of the previous two years. Qualifying may be more difficult than in the past, but the good news is that the money is moving again. Until now, those extending loans in this asset class had to keep the loans on their books, which reduced their liquidity and ability to continue lending. The CMBS pools enable banks to keep their money moving and circulating, which ultimately means more properties can be financed and refinanced. If you have an income-producing property and are looking for dynamite terms, please call Walker Commercial Funding at 281-764-1605 or email Brian at brian@walkercf.com

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