NEW YORK--(BUSINESS WIRE)--Aug 6, 2018--Kroll Bond Rating Agency (KBRA) releases July’s CMBS Trend Watch.

In the July edition of Trend Watch, we spotlight the growing presence of WeWork in CMBS transactions, which has been a hot topic in our ongoing investor discussions. The coworking business, which is the leasing of short-term shared and flexible office space, has grown from 8.1 million to 51.2 million square feet between 2010 and 2017, accounting for over a quarter of all U.S. office absorption during the 24-month period ending December 2017.

WeWork has emerged as the clear front runner in coworking and is also a top tenant in some of the largest loans securitized in CMBS deals. KBRA has identified 30 office and mixed-use whole loans participated across 46 pari-passu notes in 41 transactions where WeWork is a tenant. Based on our analysis, CMBS accounts for more than one-third of the space WeWork leases in Manhattan, its largest CMBS market.

KBRA also includes the full exposure list in excel format as a link in the report.

As we note in TW, it appears that the CMBS market is slowing down for the summer. In August, we expect to see up to a half-dozen single borrower deals and a couple of conduits come to market, which could make it one of the slowest months all year. This may be short-lived, however, as we already see activity picking up for September.

In addition to the spotlight section and anticipated CMBS volume, this month’s Trend Watch report also highlights new issuance and surveillance activity, as well as trends in KBRA’s Key Credit Metrics. The latter are also available in our KBRA Comparative Analytical Tool, which allows users to compare data among all KBRA rated conduits.

To view the report, please click .


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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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CONTACT: Analytical:

Kroll Bond Rating Agency

Taeho Lee, 646-731-2317



Larry Kay, 646-731-2452

Senior Director


Eric Thompson, 646-731-2355

Senior Managing Director



SOURCE: Kroll Bond Rating Agency

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PUB: 08/06/2018 05:00 PM/DISC: 08/06/2018 05:01 PM