Lending Momentum Revs Up in Q2

Stoffers notes that the overall lending environment is well supplied with debt capital from all sources.

LOS ANGELES—With CMBS conduits more than doubling their market share compared to a year ago, CBRE’s Lending Momentum Index for the second quarter is up 27% year over year, the firm said Wednesday. All major lending groups saw their volume improve as the pace of commercial loan closings picked up during Q2, notwithstanding the Federal Reserve’s June increase in short-term interest rates.

CMBS in particular surged ahead during Q2, accounting for 36% of non-agency originations during the quarter, compared to a 16% share in the year-ago period. Year to date, CMBS issuance reached $38.8 billion as of June 30, well above the $30.7-billion tally this lending class had reached at the end of Q2 2016.