Expect a tally of $149 billion in commercial real estate securitization volume, says KBRA

Source: Asset Securitization Report — 

The commercial real estate securitization market should top 2021 production levels, as rising employment rates in particular help support a more positive economic outlook, according to Kroll Bond Rating Agency.

Private label commercial real estate (CRE) securitizations may end up at $149 billion – more than double 2020’s volume of $62.2 billion. Next year, KBRA projects the year-end volume between $150 billion and $165 billion.

The rating agency’s November 23 forecast, 2022 Sector Outlook –CMBS: Full Steam Ahead, is particularly positive considering that the 2021’s commercial real estate transaction output market topped 2020’s. Commercial mortgage backed securities, specifically conduits and single borrowers/large loans, are forecast to end this year with $105 billion in issuances, a level not seen in 14 years, the report said.

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