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

Wednesday, 06 September 2017

Real Estate Investment Managers Face Growing Competition; Dry Powder Reaches New Record

Real estate investment managers continue to raise capital, putting dry powder at a record $255 billion, up 8 percent from the beginning of the year. That's resulted in a near feeding frenzy for certain properties when they're brought to the sales market.

Commercial Real Estate Direct Staff Report

Real estate investment managers continue to raise capital, putting dry powder at a record $255 billion, up 8 percent from the beginning of the year.

That's resulted in a near feeding frenzy for certain properties when they're brought to the sales market. Indeed, Preqin, a London research company, reports that 49 percent of North American fund managers that it surveyed said they were facing more competition for investments. But managers generally remain nonplussed and expect the real estate investment management business to continue growing.

Since 2009, real estate assets under management for the sector have just about doubled to some $800 billion. Last year, $120 billion of capital was raised. In 2009, only $51 billion was raised. But fewer investment managers are entering the real estate market, Preqin found. Last year, it recorded only 37 entrants, down from 126 in 2007.

Meanwhile, it doesn't matter what investment strategy fund managers pursued - core/core-plus, value-add or opportunistic - competition is greater now than last year, with 58 percent of those pursuing...





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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 - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
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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