CHICAGO-With pension funds and life insurance companies floodingmajor US markets with debt capital, CMBS lenders have turned theirattention to secondary markets. The shift is detailed inJones Lang LaSalle’s 2011 Spring 2011 InvestorOutlook report.

According to JLL’s report, the US debt markets have experiencedsignificant easing with the return of the CMBS market. ThroughApril 2011, $9 billion in CMBS was issued, far exceeding thenominal amount issued in the same period a year earlier, andalready more than three-quarters of the total issuance recorded forthe whole of 2010. Current estimates for 2011 issuance rangebetween $40 billion to $60 billion.

“There’s very strong interest in secondary and tertiary marketsfrom CMBS lenders,” says Paul House, a managing director with JLL’sreal estate investment banking team in Houston. “If there’s cashflow, they’re not as concerned about where the asset is located.So, secondary markets and tertiary markets are a good fit for CMBSlenders.”