Christopher Ludeman, president of the capital markets group at CBRE, is seeing more liquidity in the commercial mortgage-backed securities market as spreads on newly issued bonds tighten. The fact that these spreads have tightened is a good thing for liquidity and it will bring more people into the marketplace, Ludeman said. But fundamentals still need to improve before lenders become more active in more markets and products.
CBRE is also seeing more interest in investors that want to reposition well located, Class B properties in markets with strong fundamentals. While core continues to be attractive to capital and while there continues to be a lot of debt available to support those transactions, well find more people looking to re-position assets, Ludeman said.
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