According to GlobeSt. Royal Bank of Scotland is preparing a $500M offering of newly minted CMBS - the first such offering of the year. We saw strong interest in the DDR offering previously, although that had the added twist of TALF financing:
"It’s a good harbinger for what we are expecting and hoping is a recovery in commercial real estate lending," says Patrick Sargent, president of the Commercial Real Estate Finance Council. In particular, Sargent tells GlobeSt.com that the multiple-borrower nature of this issue, in contrast to the handful of single-borrower deals that occurred at the end of 2009, augurs a return to "more of the traditional conduit-type lending."
I suspect there will be strong demand for well underwritten CMBS with good visibility into the underlying assets.