2024 CMBS issuance recap and CREFC Miami thoughts
Steve Baumgartner, Jan 2025 - 3 min read 
Image source: Irish Times
Non-Agency CMBS Market Overview
The U.S. non-agency CMBS market ended 2024 on a remarkable note, surpassing $106 billion in total issuance. December contributed $7 billion to this impressive figure, despite the shortened holiday period. Market participants reported strong investor appetite across the capital stack, with deals consistently oversubscribed.
Source: Commercial Mortgage Alert, Morningstar Credit
December’s activity featured five Single Asset Single Borrower (SASB) deals totaling $4.4 billion, complemented by three conduit transactions worth $2.6 billion. The conduit deals maintained the recent trend of approximately $860 million per transaction.
Source: Commercial Mortgage Alert, Morningstar Credit
The year’s performance was particularly noteworthy in the SASB sector, which generated $70.5 billion across 100 deals – surpassing the combined volume of 2022 and 2023 by approximately $5 billion. These transactions showcased diverse property types and deal sizes, reflecting robust market demand. The conduit market also demonstrated remarkable strength, with $33.7 billion issued across 48 deals. This performance represents a significant advancement from 2023’s total non-agency issuance of $39.3 billion. The year’s performance was particularly noteworthy in the SASB sector, which generated $70.5 billion across 100 deals – surpassing the combined volume of 2022 and 2023 by approximately $5 billion.
CREFC Conference
As we enter 2025, momentum continues to build. The first quarter pipeline is already active, with three deals pricing before the CREFC annual Investor conference in Miami last week.
Source: Commercial Observer
The CREFC conference itself drew over 2,300 registered attendees to the Loews Miami Beach hotel, with seemingly as many market participants joining unofficially. The atmosphere reflected widespread optimism about both current market conditions and the outlook for coming years.
The conference opened with Lieutenant General (Ret.) H.R. McMaster delivering insights into today’s geopolitical landscape and its market implications.
Forum sessions throughout the event brought diverse perspectives on current market challenges while highlighting innovative solutions.
A standout session, “Bricks and Bots: AI and Innovation in CRE,” drew significant attention. Panelists agreed that while artificial intelligence adoption in commercial real estate remains nascent, the technology offers substantial potential for efficiency gains, automation, and cost reduction through streamlined operations.
Not surprisingly, outside the formal sessions, our team found ourselves continuously engaged in conversations about AI’s transformative potential in the industry. These discussions proved especially relevant given our firm’s current work with clients across various AI/ML initiatives. We’re actively partnering with organizations to develop and test practical applications that unlock tangible business value – from streamlining operations to enhancing analytical capabilities. The enthusiasm we encountered at CREFC validates our hands-on approach to helping clients navigate this technological evolution in commercial real estate.
The luncheon keynote speaker, Ron Howard delivered an engaging and entertaining dialog about his career which was facilitated by 3650 Reit’s Toby Coby. It was fascinating to hear about his early foray into acting as well as hearing how his approach to his craft has evolved over the years based on personal experience and a willingness to learn.
True to form, CREFC delivered a well-orchestrated and timely event that facilitated meaningful dialogue. The conference successfully created opportunities for market participants to exchange ideas and collaborate toward advancing the CRE capital markets.
Here’s to a great 2025!
