Commercial mortgage-backed securities market rises

The commercial mortgage-backed securities market in metro Detroit continues to see marked improvements over the last year.

Industry data from New York City-based Trepp LLC shows an overall positive trajectory for CMBS debt as there are more loans on the books, fewer delinquencies, lower overall delinquent balances and delinquency rates and a higher aggregate loan balance in the Detroit-Warren-Livonia metropolitan statistical area.

All of that bodes well — for now — for the local real estate market, which relies on the CMBS financing for a variety of things, including building purchases and debt refinancing, among others.

“There is still plenty of capital available in the marketplace,” said Dennis Bernard, founder and president of Southfield-based Bernard Financial Group. “We are in the ninth inning of an extra-inning game of the real-estate cycle. It’s long and nobody knows when it will end. But unlike in the past, underwriting has stayed appropriate.”

Continue reading full article on Crain’s Detroit Business.