Real Estate Industry Seeks Softening of CMBS Risk Retention Rules
June 2, 2016 — The CMBS market was supposed to be white-hot this year, and instead it has been ice cold for much of the year to date. Some of the main reasons involve volatility in global capital markets and the ripple effect of low oil prices, but another significant factor is CMBS investors’ concerns about loosening underwriting standards. And investors aren’t alone in worrying about risk: The federal government has weighed in, with a warning to lenders by several agencies and new risk retention rules imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
What Comes After the Fall of the CMBS Wall? Structured Finance
April 12, 2016 — CMBS issuance totaling nearly $100 billion in 2015 fell short of analyst predictions at the start of the year, but covered the $80 billion of conduit loans in need of refinancing—the leading edge of the so-called wall of maturities. Analysts have predicted an even bigger year for CMBS issuance in 2016 as the pace of maturities increases and real estate NOI continues to improve.
Tapping the Brakes: A Slowdown Beats a Crash
March 17, 2016 — As an avid cyclist, I’ve learned to appreciate and adapt to the changing seasons, especially in New England. If only real estate investment cycles were as predictable as the seasons.
Business NOT as Usual
February 9, 2016 — Is there anything worse for a commercial real estate property and investment than a failing business tenant? Everything about the deal seemed right; so what went wrong?
Interest Rate Rise May Affect RE in a Roundabout Way
January 21, 2016 — When the U.S. Federal Reserve in December raised the benchmark interest rate for the first time since 2006, the commercial real estate industry yawned. The hike was just 25 basis points, leaving plenty of spread between interest rates and investment cap rates, and real estate professionals had been anticipating an increase for years. In addition, there is so much equity capital focused on U.S. property markets that many buyers are focused on getting as much money placed as possible—and adding leverage runs counter to that goal.