Commercial Mortgage Drought

commercial-mortgage-drought The Globe says subprime-related problems could lead to a $3 to $4 billion shortfall in commercial mortgage lending in 2008.

The problem is that investors are still skittish about commercial mortgage backed securities (CMBS).  These securities finance a large part of the $15 billion commercial mortgage market.

RBC Dominions’s Reiner Plessl suggests getting commercial mortgages closed as early this year as you can.  He thinks funds allocated for commercial mortgages could dry up around August. 

That might be pessimistic…but we’ll see.

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