Approximately 29 percent of commercial real estate debt is traded in public markets and the remaining 71 percent is privately held by institutional and individual investors. Commercial banks, savings institutions, and life insurance companies are the long-term holders of private commercial real estate debt. At least until 2008, Commercial mortgage-backed securities (CMBSs) had been the fastest growing source of long-term mortgage funds.
General partners have unlimited liability and are liable for all debts of the partnership. This includes contractual debts and debts resulting from tort actions against the partnership. General partners are also jointly and severally liable for wrongful acts committed by other partners in the course of the partnership's business. Therefore, the personal assets of the general partners are subject to the claims of the partnership's creditors.
Pension funds have historically viewed real estate as too risky, difficult to manage, and illiquid. Addtionally, the lack of available information for performing quantitative investment analysis has also contributed to the reluctance of pension funds to invest in real estate.