WASHINGTON, DC—An analysis of commercial mortgage-backedsecurities debt in the Washington, DC area shows that there will bea significant rise in the amount of loans coming due beginning inthe next 18 months.

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Brokerage firm JLL calculates thatapproximately $5 billion in CMBS debt will be coming due on localcommercial properties in 2017 alone, about four times the amountprojected to be due this year.

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The debt problem worsens when you consider D.C., Maryland andVirginia and not just the District and the suburbs. Credit ratingsfirm Morningstar puts the 2017 CMBS number forthat larger region at nearly $10 billion, according to theWashington Post.

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Despite the significant CMBS debt load, financial analystsbelieve building owners will have options. Frank A.Innaurato, a managing director at Morningstar, says,“Major destination or gateway markets like D.C. remain favorablefrom a lending and refinance perspective versus secondary andtertiary markets.”

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Wesley C. Boatwright, managing director ofJLL's capital markets group, says, “The idea that there is wave ofCMBS maturities is not in itself a distressed situation. You willnot see people giving properties back to lenders at the level thatyou did in 2008, 2009 and 2010,” Boatwright says. See story in theWashington Post.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.