When it comes to real estate, there are so many data points. But one stood out to me today, and it wasn't the Case-Shiller index.
It was the total number of Commercial Mortgage-Backed Securities (CMBS) issued this month. The number? Zero.
In June 2007, CMBS issuance totaled $44 billion, and if you go back to the last three months, there has been a total of $4.48 billion in new CMBS to hit the market. (Source: Thomson Reuters)
Can commercial real estate possibly resurrect itself without the mortgage-backed securitization market? It's a chicken and egg question, really. Does commercial real estate need securitization to come back to survive, or will the securitization market return if prices go up?
I don't know the answer to this seemingly arcane, but definitely crucial question. But today's guest does, and my "Call-to-Action" is to listen to him carefully.
Scott Rechler, CEO of RXR Realty, masterminded the sale of Reckson Associates Realty to SL Green Realty at the top of the market, one of the largest public real estate management buyouts in REIT history. In other words, he top-ticked the real estate market, so when he speaks, you need to listen.
With the release of the S&P/Case-Shiller home price index today showing that home prices have generally moved sideways this past year, you'll undoubtedly hear a number of so-called experts weigh in on the real estate market.