Commercial Real Estate Debt Is Back With 170% Jump in Sales

Commercial real estate was one of the scariest assets in the US last year. This year, investors are warming to it once again — and that’s helped revive a key property debt market.

Investors have snapped up about $24.6 billion of new commercial mortgage backed securities so far in 2024, 170% more than the same period in 2023, according to data compiled by Bloomberg News. Spreads on the riskiest portions of CMBS deals have been among the top performers compared to other widely traded types of credit.

A contractor operates machinery at a development under construction in Brooklyn, New York.

Photographer: Ismail Ferdous/Bloomberg

When lightning-quick bankruptcies felled several regional lenders last year and interest rates ...