U.S. CMBS, Office Sales Likely to Rise in 2011

As prices for high-end New York office buildings start to rebound, so will the market for bonds that bundle property loans

(Bloomberg) — Prices of high-quality New York office buildings and sales of commercial mortgage-backed securities are likely to increase in 2011 as the U.S. economy recovers and interest rates stay low, said a panel of real estate executives. Demand for refinancing will be "tremendous" as 2012 approaches because of the high volume of loans taken out in 2005 to 2007 with five-year maturities, said P. Sheridan Schechner, managing director at Barclays Capital Inc.

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