MIAMI—What does 2015 hold on the capital markets front? That depends, in part, on whom you ask. I asked Greg Matus, regional managing partner of Franklin Street’s South Florida offices, for his quick predictions.
“Next year, we will see a lot of the mid-to-large commercial real estate deals take place, primarily because a lot more debt will be available to investors,” Matus tells GlobeSt.com. “2015 will be the year that CMBS and non-recourse financing explodes.”
“Explode” is a strong word. What makes Matus think that’s the appropriate prediction?
For one thing, he says, investors have been backfilling their space over the past few years in an improving economy. That has led to higher occupancy rates.
“As a result, they have grown significant equity in their assets,” Matus says. “Now, these investors are in a position to take equity out, as buyers can secure non-recourse loans at favorable rates.”
Does the market have a short-term memory? Maybe, if Matus is right: “I think we’ll start approaching the same level of trades that we did prior to the market crash in ’08 in all asset classes, with significant growth in multi-tenant retail business.”