U.S. commercial real estate market fundamentals currently look as if they will continue to stabilize going forward but it will depend to some extent on property type, location and liquidity, according to Fitch's recent structured finance outlook conference call.
“At this moment in time Fitch expects that market fundamentals for U.S. commercial real estate will continue to stabilize,” said Huxley Somerville, Fitch's head of U.S. commercial mortgage-backed securities, during the call.
He noted that one possible risk to the forecast that remains difficult to quantify is the effect “that a potential lack of CMBS liquidity may have on performance.”
This, he noted, “was already apparent in the second half, although its effects seem to have been muted at the property level.”
