Leleu continues, “In Europe, commercial real estate debt is a big driver of overall market liquidity, but the past five years have highlighted some important differences between Europe and the US in how debt has been deployed. Understanding these differences in the context of current measures being taken by different nations to support the commercial real estate market is an important step in the process of explaining the current lack of distress and planning for the future.”
“In Europe, the actual amount of debt issued and the degree of leverage used was far less than in the US. There was also a significant difference in the use of commercial mortgage-backed securities (CMBS) versus on-balance-sheet debt. Historically, the European commercial real estate (CRE) debt market has been dominated by on-balance-sheet lenders. It is only over the past three to five years that CMBS became such a sizeable component. There is currently $100bn (€66.4bn) of European CMBS maturing through to 2016 compared to $600bn in the US.”
Read the full story here.
United States
Real Estate Forum International BeatVolatile US Investment Climate Sends Players to Emerging Markets
