United States of America Capital Markets: U.S. Lender Forum December 2014
- The conditions that have supported increased liquidity for U.S. commercial real estate transactions continued to improve during Q3 2014. Yields for longer-term U.S. Treasuries fell during the quarter, while the availability of both public and private real estate mortgage debt increased.
As a result, borrowing costs for permanent, fixed-rate loans declined 11 basis points (bps) between the second and third quarters. Property acquisitions grew, with investment sales volume up 11% year-over-year, according to Real Capital Analytics.
The CBRE Lending Momentum Index, which tracks U.S. commercial loan closings, was up 5.2% quarter-over-quarter and 8.9% year-over-year. Compared to activity a year ago, loan closings for industrial and retail assets were up sharply, though the pace of office closings, while still up year-over-year, slowed relative to a year ago.