Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 25 November 2019

Net-Lease Investments on Record Pace for 2019

Net-lease investments saw a 30.2 percent increase to $20.9 billion in the third quarter when compared to last year, according to CBRE. Year-to-date volume, meanwhile, is up 24 percent from last year's pace, to $55.2 billion. Transaction activity indicates that full-year volume will top last year's $69.6 billion of volume.

Commercial Real Estate Direct Staff Report

Low interest rates and healthy risk-adjusted returns are driving the volume of transactions involving net-leased properties in the United States to record levels, according to CBRE.

Net-lease investments saw a 30.2 percent year-over-year increase to $20.9 billion in the third quarter, the brokerage found. Year-to-date volume, meanwhile, is up 24 percent from last year's pace, to $55.2 billion. Transaction activity indicates that full-year volume will top last year's $69.6 billion of volume.

"Investors are attracted to the risk-adjusted returns and long-term leases," said Will Pike, vice chairman of net lease properties at CBRE's capital markets unit. "They are driven to properties with quality operators - think about the local Walgreens - and a lease structure with terms favorable to the landlord. Location and real estate quality also factor into the investment."

Net lease...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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