ValueXpress continues to see strong CMBS conduit loan demand as loan originations through September are setting up 2021 to exceed the highest annual CMBS issuance volume since before the financial crisis more than ten years ago. CMBS shops floated a whopping $74.6 billion of CMBS compared with $41.6 billion during the same period in 2020. Lenders are on pace to exceed the annual post-crash peak of $102.2 billion of CMBS issued in 2019.
Source: Commercial Mortgage Alert
The pandemic negatively impacted CBMS loan originations in 2020, but demand has increased significantly in 2021 to date despite concerns regarding uneven hotel performance post-COVID, work-at-home trends for office, and the continued “Amazon” effect on retail. These concerns are offset by the strong performance for multi-family and manufactured housing communities and virtually no delinquency in self-storage and industrial properties. Long-term net leased properties are finding a warm reception in CMBS loan pools in all asset classes.