Strong demand led to tight pricing on newly issued CMBS securities amid the marketing of $10 billion of bonds. Wells Fargo, Morgan Stanley, Bank of America and NCB priced the $1-billion conduit issue on June 14, with the super-senior, long-term AAA-rated bonds pricing at 64 basis points (bp) over … [Read more...] about 6.20.21: CMBS SPREADS CONTINUE TO TIGHTEN ON STRONG INVESTOR DEMAND
4.2.21: HOTELS IN TOURIST LOCATIONS FINDING STRONG DEMAND
As previously reported, the COVID-19 pandemic has affected hotels more than other asset classes eligible for CMBS conduit loans. In January 2021, the U.S. hotel industry reported all-time lows in occupancy and revenue per available room (RevPAR), according to yearend 2020 data from STR. In addition, … [Read more...] about 4.2.21: HOTELS IN TOURIST LOCATIONS FINDING STRONG DEMAND
3.23.21: CMBS DEMAND STRONG AS INVESTORS LOOK TO PUT MONEY TO WORK
The COVID-19 pandemic has temporarily suppressed new CMBS loan originations, resulting in fewer CMBS securities available to investors. With CMBS bond buyers flush with new annual capital allocations for CMBS and a shortage of securities, spreads continue to tighten, benefitting CMBS loan borrowers. … [Read more...] about 3.23.21: CMBS DEMAND STRONG AS INVESTORS LOOK TO PUT MONEY TO WORK
8.1.20: INVESTOR DEMAND STRONG FOR NEW CMBS LOANS
Two multi-borrower CMBS issues priced in July at the tightest spreads since the start of the COVID-19 pandemic. The offerings were a $1.1-billion offering led by Deutsche Bank, Citigroup, J.P. Morgan and Goldman Sachs (BMARK 2020-B18) and a $690.6-million offering led by Morgan Stanley and Barclays … [Read more...] about 8.1.20: INVESTOR DEMAND STRONG FOR NEW CMBS LOANS
2.1.19: First CMBS Issues for 2019 See Strong Demand
ValueXpress tracks the pricing of CMBS securities because it directly correlates to the interest rate borrowers receive for a CMBS conduit loan. Our insight into the CMBS market ensures that our borrowers receive the lowest possible interest rate on their loan. ValueXpress has been tracking CMBS … [Read more...] about 2.1.19: First CMBS Issues for 2019 See Strong Demand
8.10.16: Demand for Industrial Space in New Jersey Continues to Soar
In May 2016, CBRE Group, Inc. (CBRE) reported that developers saw a need for large industrial buildings in New Jersey and responded by developing speculative (not pre-leased) projects. While speculative development is very risky, tenants responded by gobbling up the space at a rapid rate. Demand … [Read more...] about 8.10.16: Demand for Industrial Space in New Jersey Continues to Soar
5.6.16: Self-Storage in High Demand in New York City
With tiny, expensive apartments and a lot of stuff, decluttering may be what New Yorkers talk about, but what they really do is rent more space. And self-storage companies and real-estate investors are ready and waiting to fill the demand. New York City is packed with customers who see storage … [Read more...] about 5.6.16: Self-Storage in High Demand in New York City
9.14.15: CMBS Prices Improve as Demand Picks Up
After a summer in which CMBS bond demand was relatively weak, resulting in widening of spreads, the first deal to price after Labor Day flew off the shelf. The deal, a $757.3-million multi-borrower offering by UBS and Bank of America, priced the benchmark class at 117 basis points (bp) over swaps, … [Read more...] about 9.14.15: CMBS Prices Improve as Demand Picks Up
2.12.15: Apartment Rents Rise in 2014 Amid Strong Demand, But Is the Party Over?
Reis reports that apartment rents grew by 0.6% nationally during the fourth quarter of 2014, a bit of a slowdown from the pace observed during 2014’s second and third quarters. Nevertheless, the trend in rents is up. Annual rent growth for apartment rents was 3.5% in 2014. This the best performance … [Read more...] about 2.12.15: Apartment Rents Rise in 2014 Amid Strong Demand, But Is the Party Over?
12.9.11: UBS and Citigroup Price CMBS Issue Amid Strong Demand
UBS and Citigroup priced a $674-million CMBS transaction on December 9 that found strong demand. The AAA-rated super-senior bonds priced mostly in line with initial pricing guidance and at tighter spreads in most cases than comparable paper in the previous multi-borrower transaction -- a … [Read more...] about 12.9.11: UBS and Citigroup Price CMBS Issue Amid Strong Demand
