Winter 2012, Vol. 37, Nos. 2&3
Abstract: Commercial mortgage-backed securities (CMBS) was a significant source of long-term capital for commercial real estate from the mid-1990s until the time of the financial crisis in 2007–2008. CMBS issuance went to near zero at that point, and has been on the road to recovery since 2009. In this article, the author presents a case for the return of the CMBS market as a viable source of capital in the future. The case is based on strengthening real estate fundamentals, renewed interest in CMBS by investors and the competitive environment among commercial real estate capital sources.