CMBS issuance in the single-family rental sector hit $8.3 billion in 2020, double the amount issued in 2019, according to recent data from Trepp.
The uptick stands in stark contrast to issuance volume for other asset classes during the pandemic year, which declined across the board. And the trend is expected to continue in 2021, as large investors flood the space and total volume inches north of $3 billion.
Trepp analysts call the SFR space "recession-resistant," noting that the delinquency rate of SFR properties backing CMBS loans is below 1% and has remained at that level over the last year (with the exclusion of December 2020). In April, the delinquency rate of SFR loans hit 0.31%, and the special servicing rate hit 0.66% (compared to 10.32% and 10.48%, respectively, for the overall CMBS market).
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