CBRE Capital Markets Lender Forum | December 2013

Real estate capital markets entered Q3 2013 amid a cloud of uncertainty following interest rate hikes in late spring, the prospect of a government shutdown and slowing economic activity.  Despite these headwinds, lending and investment sales markets maintained forward momentum during the quarter.  Lending by banks and CMBS issuers remained strong, which has brightened our short-term outlook for lending growth as we move towards 2014.

This report reflects the partnership between CBRE Global Research and Consulting and CBRE Capital Markets to provide a rich database and charts on which to gauge the progress of this recovery. Examining a proprietary database of loan data, CBRE Research and Consulting has created an index tracking the momentum of deal activity in the market for commercial mortgage loans. Key trends include:

• Markets stabilized during Q3 2013, after a sharp widening of rates and spreads in May and June.  Lending momentum improved despite the earlier capital market disruptions.

• Banks had a strong quarter, capturing the highest share of commercial originations among the principal lender types.

CMBS activity also was resilient.  However, new risk retention rules may raise CMBS loan pricing in the coming years

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