Real Estate Optimistic In 2010
In essence, those banks with a clean slate can write conservative loans on conservative values, but those hampered by unrecognized problem loans will It is a good time to have money and to be lending on commercial real estate because values have collapsed and there is still very little capital to take advantage of these depressed values. Regardless, some predict that this year, $12 billion to $20 billion in new CMBS offerings will hit the market – marking a fantastic beginning for the commercial real estate market to heal. Unlike in 2006 and 2007, these conduit loans will be characterized by conservative valuations and even stricter underwriting guidelines than in years past. Bank of America, Citigroup, JP Morgan Chase and Goldman Sachs all have announced plans to amass loan portfolios that they intend to pool together and sell as CMBS.
And even as investors struggle with CMBS (commercial Mortgage Backed Securities) that were originated in years past, a new version of CMBS is gearing up in a serious way. Despite wanting to invest money in mortgages, most lenders have a cautious view of the current market, so new loans for transactions are being underwritten much more conservatively than we’ve seen in the past. Money from Wall Street to Main Street is piling up and poised for investment. Most conversations about 2009 were brief, and not very uplifting, but the outlook for 2010 was extremely optimistic. Commercial real estate lenders talked about the coming year and reflect on the past year at the annual Mortgage Bankers Association Convention in Las Vegas.
And even as investors struggle with CMBS (commercial Mortgage Backed Securities) that were originated in years past, a new version of CMBS is gearing up in a serious way. Despite wanting to invest money in mortgages, most lenders have a cautious view of the current market, so new loans for transactions are being underwritten much more conservatively than we’ve seen in the past. Money from Wall Street to Main Street is piling up and poised for investment. Most conversations about 2009 were brief, and not very uplifting, but the outlook for 2010 was extremely optimistic. Commercial real estate lenders talked about the coming year and reflect on the past year at the annual Mortgage Bankers Association Convention in Las Vegas.
