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CMBS Loan Issuance Jumps Almost 50% To $9.9B In August

Worries regarding new government regulations caused CMBS issuance to slow in the beginning of the year, but activity has since rebounded.


In August, $9.9B in CMBS loans were issued, bringing the total activity to $52B, a 41% increase over last year, CoStar reportsIn June, about $10B worth of CMBS loans matured and were in need of refinancing and more than $40B of CMBS debt is still set to mature by November.

According to Morgan Stanley Research, 90% of single-asset CMBS issuance this year was used to refinance existing loans. Office properties make up the majority of the new CMBS deals, with office commercial mortgage-backed securities more than tripling in August to $3.9B. CoStar reports this could lead to office CMBS surpassing the 2016 total volume by an estimated 30%, making it the highest sector total since 2007.

Another 10 new CMBS deals are on track for September issuance, including five publicly offered conduit deals from Citigroup, Credit Suisse, Deutsche Bank and Wells Fargo.