CMBS Issues Hammered Retail Closings in Third Quarter

Posted October 27, 2011

In Commercial, investing, Lending, Retail

Retail closings fell 46% in the third quarter to $8.2 billion from the second quarter’s $15.2 billion. As bad as that was it was still an improvement over last year’s third quarter of $6.6 billion. True, the second quarter might be distorted a bit by Blackstone’s $9.2 billion acquisition of Centro Property Group’s portfolio, but activity has been trending down over the last quarter versus the first two quarters.

Activity in the first two quarters had spread to secondary and tertiary markets, but when the CMBS market came to a halt, funding for the $10 million and up deals also slowed dramatically.

CMBS is coming back a bit, but investors are very cautious about anything other than single-tenant, national credit retail type deals. Of course, now we have a supply shortage because of the difficulty of obtaining construction financing over the last three years.

Retail Traffic Mag – News – CMBS – Drove Down Sales Volume Third Quarter

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