Commercial Servicing.(commercial real estate mortgage industry analysis, trends and forecasts)(Brief Article)

Sure, the residential side of the mortgage business has grown quickly in recent years. But don't forget about the commercial real estate side of the business. Commercial and multifamily real estate debt outstanding now totals $2.4 billion and it's a growing part of the finance arena as well.

While commercial banks continue to be the largest holders of CRE debt, mortgage companies and other players continue to expand in this field as well.

Just as in the residential market, concerns have been expressed about the stability of the commercial real estate market. Prices have been rising fast, and that means that capitalization rates - a ratio of the property's income to its value - have been stretched. Still, few industry analysts and experts believe there is a national "bubble" in prices for CRE. But that doesn't mean lenders shouldn't be careful. With aggressive competition in the market for commercial real estate debt - including riskier components such as mezzanine financing - commercial real estate servicers are sure to have ...