Attorney Ken Fields, a partner & head of the real estate practice at Greenberg Glusker in Los Angeles, said low cap rates are contributing to lower sales volume. “I’m seeing a little less transaction volume in certain asset classes because of how low they are,” he said. Fields said his firm does more life insurance, bank and Freddie Mac and Fannie Mae deals than CMBS transactions. Almost all the large multifamily deals in the last two years have been Fannie or Freddie.

Borrowing costs have increased, according to an October capital markets update from Cushman & Wakefield. Treasury rates had been steadily rising with the 10-year Treasury rate hitting a four-year low of 1.375 percent on July 5. It has moved back up and was ranging between 1.79 and 1.83 percent in early November. The report noted CMBS spreads had been “modestly widening during the past two months.”

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Resources

• Private Lenders Step in to Fill the CMBS Gap