Think about it. We had lenders jumping all over each other in pricing while Treasuries, about the safest investment there is, were at higher rates.
Now interest rates are back down. And CMBS is not exactly at record-high default levels, is it? (Granted, the market lags, but get real.)
So the ever-quotable Sam Zell is saying that it only makes sense for institutions to return to the CMBS market, and that he is seeing the first steps of an easing in the market. This is especially true if lenders hold to the 6% floor we've been hearing about, as those are the kinds of numbers that allow money to be made. And spreads are down to boot.
Does this mean the downturn's over? Heck no. The Germans have not bombed Pearl Harbor, and I think you'll see some interesting shaking up on some properties or developments being pushed back, regardless of cache or quality. But if buyers and developers can get reasonable financing, that's a sign that we're back to reasonable times.