Industry Study

2023 Canadian CMBS Market Outlook



DBRS, Inc. (DBRS Morningstar) released its 2023 outlook for the Canadian commercial mortgage-backed security (CMBS) market.

Despite another slow year in the new securitization market with only one CMBS transaction completed in 2022, the Canadian CMBS market remained stable and outperformed the U.S. market based on loan delinquency and special service rates. While the hotel asset type showed improving performance in 2022, concern for the office and retail asset types is expected to continue into 2023.

DBRS Morningstar expects increasing Canadian CMBS volume in 2023 as borrowers search for alternative lending resources in the wake of conventional lenders reducing capital allocation to commercial real estate.