Multifamily Distress and the New York MSA

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February 23, 2023

A point of interest among multifamily investors reviewing February 2023 reporting data for CMBS securitizations was the special servicing transfer of a $270.3 million floating-rate mortgage secured by a 637-unit, 11-property multifamily portfolio owned by Blackstone. CRED iQ anticipates the special servicing transfer to elevate the distressed rate for CMBS loans secured by multifamily properties within the New York City MSA. Prior to February 2023, CRED iQ’s distressed rate for NYC Multifamily was 0.71%. Distressed Rate is defined as the percentage of loans that are specially serviced, delinquent, or a combination of both. Although the distressed rate for NYC multifamily appears nominal at first glance, the New York MSA still ranked as the sixth-highest for multifamily distress among the Top 50 markets tracked by CRED iQ. Other notable distressed properties in the New York MSA include 1209 Dekalb, a 127-unit mid-rise property in Brooklyn. The property secures a $46 million mortgage that has been specially serviced since October 2020. Among multifamily markets with higher distress than New York were San Francisco (5.83%) and Los Angeles (1.24%).

To be fair, the New York MSA is by far the largest multifamily market in the U.S and is expected to continue to attract multifamily investment given vacancy rates that trend below national levels and favorable demographics. These positives are balanced by headwinds such as negative net migration away from the metro and geographical resident deterrence stemming from remote working alternatives.

Reframing our view of distress to a historical perspective, the New York MSA has improved on an absolute basis compared to 12 months prior when the multifamily distressed rate for the market was 1.41%. However, the distressed rate appears to have reached its apex in October 2022 when the distressed rate declined as low as 0.51%. After October 2022, the New York MSA multifamily distressed rate increased for three consecutive months, without yet accounting for the latest $270.3 million addition to the distressed bucket.

Compared to the overall CMBS distressed rate for multifamily loans, historical trends for the New York MSA have exhibited similar patterns over the past year. The multifamily distressed rate for CMBS has been trending higher for six months. The low-point for distress in CMBS multifamily loans over the past year occurred in July 2022 when the distressed rate was 1.41%. Notable, there were spikes in distress in August and November caused maturity defaults that were worked out by the next month. The multifamily distressed rate for CMBS has nearly doubled since July 2022.

Overall, the performance of the CMBS multifamily sector can be put into perspective when considering other property types and the broader multifamily market. Multifamily, along with industrial, have been the two best performing property types in recent history. Other property types like retail, lodging and more recently office have faced secular headwinds due to shifting usage trends. For comparison, Fannie Mae’s multifamily delinquency rate — defined as loans that are 60+ days delinquent – has consistently and steadily declined from its February 2022 mark of 0.40%. The Freddie Mac K-deal multifamily delinquency rate has barely registered with a delinquency rate – defined as loan that are 30+ days delinquent — of just eight basis points as of year-end 2022. CMBS multifamily collateral tends to have more idiosyncrasies than Fannie Mae and Freddie Mac collateral, partially explaining the variation in distressed rates. Additional idiosyncrasies and pockets of distress, such as the New York multifamily default, may materialize market by market as maturity balloon payments come due and floating-rate debt service continues to pressure coverage ratios.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities.

The platform also offers a highly efficient valuation engine which can be leveraged across all property types and geographies. Our data platform is powered by over $2.0 trillion in transactions and data covering CRE, CMBS, CRE CLO, Single Asset Single Borrower (SASB), and all of GSE / Agency.

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Distressed Workouts and Payoffs – January 2023

By

CRED iQ

-

February 10, 2023

0

CMBS transactions incurred approximately $76 million in realized losses during January 2023 via the workout of distressed assets. CRED iQ identified 24 workouts classified as dispositions, liquidations, or discounted payoffs in January 2023. Of the 24 workouts, nine were resolved without a loss. Of the 15 workouts resulting in losses, severities for the month of January ranged from 4% to 100%, based on outstanding balances at disposition. Aggregate realized losses in January 2023 were approximately 42% lower than December 2022 despite nearly three times as many distressed workouts. The number of distressed workouts was the third-highest over the past year while aggregate realized losses ranked as one of the three-lowest totals over the same period. On a monthly basis, realized losses for CMBS transactions averaged approximately $133.1 million during the trailing 12 months.

By property type, workouts were evenly concentrated in lodging, office, and retail, each accounting for six distressed resolutions. The six office workouts had the highest total of aggregate realized losses ($29.3 million), which accounted for 39% of total losses for the month. The largest individual realized loss from CRED iQ’s observations was from Marriott Galleria, a 301-key full-service hotel located in Houston, TX. The property had been REO since June 2021 and was sold via auction in August 2022 for approximately $28 million, equal to $93,000 per key. The sale price was significantly higher than the property’s July 2022 appraised value of $18.4 million, equal to $61,000 per key. The asset had outstanding debt of $29.1 million, which incurred a $13 million loss upon liquidation this month accounting for expenses, equal to a 45% severity.

The largest workout by outstanding debt balance was a $75.4 million mortgage secured by The Collection at Forsyth, a 523,535-SF lifestyle center located 30 miles north of Atlanta, GA. The loan transferred to special servicing in early-December 2022 just prior to maturity default. The loan collateral was sold shortly thereafter to CTO Realty Growth Inc. for $96 million ($183/SF), allowing for sale proceeds to retire the outstanding mortgage without incurring a loss. This was a relatively encouraging resolution as the loan was able to be worked out swiftly and without a loss.

Excluding defeased loans, there was approximately $5.7 billion in securitized debt among CMBS conduit, Single-Borrower Large-Loan, and Freddie Mac securitizations that was paid off or liquidated in January 2023, which was approximately an 18% decrease compared to $7 billion in December 2022. In January, 7% of the loan resolutions were categorized as dispositions, liquidations, or discounted payoffs. The percentage of distressed workouts was only 2% in the prior month. Approximately 28% of the loans were paid off with prepayment penalties, which was less than 36% as of the prior month.

Excluding Freddie Mac securitizations, retail had the highest total of outstanding debt payoff in January with approximately 34% of the total by balance. Multifamily and office were the property types with the next highest outstanding debt payoff with 23% and 16% of the total, respectively. Among the largest individual payoffs was a $237.4 million mortgage secured by the Green Acres Mall, a 1.8 million-SF regional mall owned by Macerich and located on Long Island, NY.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $2.0 trillion of commercial real estate.

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Commercial Real Estate Market Delinquency Tracker – January 2023

By

CRED iQ

-

February 7, 2023

0

CRED iQ monitors distressed rates and market performance for nearly 400 MSAs across the United States, covering over $900 billion in outstanding commercial real estate (CRE) debt. Distressed rates (DQ + SS%) include loans that are specially serviced, delinquent, or a combination of both. Distressed rates and month-over-month changes for data reported as of January 2023 are presented below for the 50 largest MSAs, broken out by property type for a granular view of distress by market-sector.

Of the 50 largest MSAs tracked by CRED iQ, 27 of those markets exhibited month-over-month declines in the percentage of distressed CRE loans. The average decline among the 27 markets with lower distressed rates was -0.2%. Notable markets with decreased levels of distress this month included Portland (-2.2%), Washington, DC (-0.8%) and Birmingham, AL (-0.7%).

There were 23 markets with month-over-month increases in the percentage of distressed CRE loans. The average increase for these markets was +0.4%. The Charlotte MSA had the highest increase in overall distress this month (+3.7%), which was driven by adverse developments in the office sector. The Denver MSA additionally had a notable increase in distress (+1.9%) driven primarily by the office sector.

For a more granular analysis of the Top 50 markets, CRED iQ further delineated individual markets’ distressed rates by property type for a comprehensive view by market-sector. For a second consecutive month, deterioration in the office sector was a primary factor in increases in distress by market-sector. Metrics continue to worsen for the Denver office market. Last month’s Market Delinquency Tracker detailed the special servicing transfer of the $243.6 million Republic Plaza office loan. More recently, a $277.1 senior mortgage secured by Wells Fargo Center transferred to special servicing. These two credit developments pushed CRED iQ’s Denver office distressed rate to 14.2%, which compares to 7.3% just two months ago as of November 2022. Aside from Denver, the Charlotte office market exhibited a swiftly elevated increase in distress after a $160 million mortgage secured by 301 South College Street transferred to special servicing and a $120 million loan secured by Charlotte Plaza defaulted at maturity.

Another market-sector that was impacted by increased distress was the Tampa retail market. A $72.4 million loan secured by The Shops at Wiregrass, a 729,324-SF lifestyle center became 30 days delinquent as of January 2023. The property was 80% occupied as of September and has been adversely impacted by in-line tenant turnover since 2020.

Several hotel and retail markets continued to improve in January 2023. Three of the five largest percentage declines in distressed rates across market-sectors this month were lodging markets. Four of the 10 largest percentage declines were in retail markets. The Portland lodging market exhibited one of the sharpest declines in distress following a modification of a $51.9 million mortgage secured by the 205-key Westin Portland. The loan had been with the special servicer since June 2020 due to pandemic-related distress but returned to the master servicer in December 2022.

The Minneapolis MSA has the highest overall distressed rate at 20.4%, which was slightly higher than the previous month. Cleveland (10.7%), Birmingham (10.4%), Hartford (8.9%), and Milwaukee (8.7%) comprise the remaining markets with the highest rates of distress. For the second consecutive month, the Sacramento MSA (0.1%) is the market with the lowest percentage of distress among the Top 50 MSAs.

For the full Market DelinQuency Tracker Report, download here:

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MSA – Property Type	DQ/SS (millions)	DS/SS (%)	Monthly Change
Allentown-Bethlehem-Easton, PA-NJ MSA	$77.5	2.4%	0.0%
Allentown – Hotel	$0.4	1.0%	-0.9%
Allentown – Industrial	$0.0	0.0%	0.0%
Allentown – Multifamily	$0.0	0.0%	0.0%
Allentown – Office	$58.2	17.9%	0.0%
Allentown – Other	$0.0	0.0%	0.0%
Allentown – Retail	$19.0	5.1%	0.0%
Allentown – Self Storage	$0.0	0.0%	0.0%
Atlanta – Atlanta-Sandy Springs-Marietta, GA MSA	$525.6	1.9%	0.0%
Atlanta – Hotel	$82.1	3.2%	-0.1%
Atlanta – Industrial	$0.0	0.0%	0.0%
Atlanta – Multifamily	$0.0	0.0%	0.0%
Atlanta – Office	$63.9	3.0%	0.4%
Atlanta – Other	$0.0	0.0%	0.0%
Atlanta – Retail	$379.7	17.4%	-1.4%
Atlanta – Self Storage	$0.0	0.0%	0.0%
Austin – Austin-Round Rock, TX MSA	$109.8	1.2%	0.0%
Austin – Hotel	$50.3	5.6%	-1.0%
Austin – Industrial	$0.0	0.0%	0.0%
Austin – Multifamily	$0.0	0.0%	0.0%
Austin – Office	$0.0	0.0%	0.0%
Austin – Other	$4.1	1.3%	0.1%
Austin – Retail	$55.4	7.1%	0.7%
Austin – Self Storage	$0.0	0.0%	0.0%
Baltimore – Baltimore-Towson, MD MSA	$356.0	3.7%	-0.2%
Baltimore – Hotel	$43.8	9.1%	-0.4%
Baltimore – Industrial	$0.0	0.0%	0.0%
Baltimore – Multifamily	$3.8	0.1%	0.0%
Baltimore – Office	$46.6	5.5%	0.3%
Baltimore – Other	$11.5	6.2%	1.3%
Baltimore – Retail	$250.3	22.8%	0.3%
Baltimore – Self Storage	$0.0	0.0%	0.0%
Birmingham – Birmingham-Hoover, AL MSA	$321.8	10.4%	-0.7%
Birmingham – Hotel	$0.0	0.0%	0.0%
Birmingham – Industrial	$0.0	0.0%	0.0%
Birmingham – Multifamily	$63.2	4.5%	0.0%
Birmingham – Office	$94.5	18.9%	0.6%
Birmingham – Other	$0.0	0.0%	0.0%
Birmingham – Retail	$164.2	23.0%	-2.7%
Birmingham – Self Storage	$0.0	0.0%	0.0%
Boston – Boston-Cambridge-Quincy, MA-NH MSA	$123.1	0.6%	0.0%
Boston – Hotel	$19.3	1.2%	0.0%
Boston – Industrial	$0.0	0.0%	0.0%
Boston – Multifamily	$0.0	0.0%	0.0%
Boston – Office	$14.5	0.2%	0.0%
Boston – Other	$0.0	0.0%	0.0%
Boston – Retail	$89.3	5.1%	-0.4%
Boston – Self Storage	$0.0	0.0%	0.0%
Bridgeport – Bridgeport-Stamford-Norwalk, CT MSA	$199.3	4.8%	-0.2%
Bridgeport – Hotel	$38.0	24.3%	-5.6%
Bridgeport – Industrial	$17.8	15.0%	15.0%
Bridgeport – Multifamily	$0.0	0.0%	0.0%
Bridgeport – Office	$133.6	11.1%	-2.9%
Bridgeport – Other	$9.8	3.3%	0.8%
Bridgeport – Retail	$0.0	0.0%	0.0%
Bridgeport – Self Storage	$0.0	0.0%	0.0%
Charlotte – Charlotte-Gastonia-Concord, NC-SC MSA	$573.3	7.4%	3.7%
Charlotte – Hotel	$35.3	4.0%	-0.3%
Charlotte – Industrial	$0.0	0.0%	0.0%
Charlotte – Multifamily	$0.0	0.0%	0.0%
Charlotte – Office	$355.1	38.4%	30.4%
Charlotte – Other	$99.5	31.1%	-0.3%
Charlotte – Retail	$83.5	9.1%	-1.1%
Charlotte – Self Storage	$0.0	0.0%	0.0%
Chicago – Chicago-Naperville-Joliet, IL-IN-WI MSA	$2,384.2	7.8%	0.5%
Chicago – Hotel	$747.4	31.0%	0.2%
Chicago – Industrial	$0.0	0.0%	0.0%
Chicago – Multifamily	$53.8	0.6%	0.0%
Chicago – Office	$1,121.7	12.5%	1.0%
Chicago – Other	$208.4	8.2%	0.0%
Chicago – Retail	$252.8	7.9%	0.9%
Chicago – Self Storage	$0.0	0.0%	0.0%
Cincinnati – Cincinnati-Middletown, OH-KY-IN MSA	$137.2	3.6%	0.0%
Cincinnati – Hotel	$86.9	30.0%	0.0%
Cincinnati – Industrial	$0.0	0.0%	0.0%
Cincinnati – Multifamily	$0.0	0.0%	0.0%
Cincinnati – Office	$0.0	0.0%	0.0%
Cincinnati – Other	$6.8	2.6%	0.0%
Cincinnati – Retail	$43.5	7.9%	0.0%
Cincinnati – Self Storage	$0.0	0.0%	0.0%
Cleveland – Cleveland-Elyria-Mentor, OH MSA	$450.2	10.7%	0.4%
Cleveland – Hotel	$84.8	46.4%	0.0%
Cleveland – Industrial	$0.0	0.0%	0.0%
Cleveland – Multifamily	$0.0	0.0%	-0.1%
Cleveland – Office	$185.2	21.3%	2.5%
Cleveland – Other	$172.5	42.9%	0.0%
Cleveland – Retail	$7.7	1.1%	0.0%
Cleveland – Self Storage	$0.0	0.0%	0.0%
Columbus, OH – Columbus, OH MSA	$158.4	2.3%	0.0%
Columbus, OH – Hotel	$19.4	6.8%	-0.2%
Columbus, OH – Industrial	$0.0	0.0%	0.0%
Columbus, OH – Multifamily	$0.0	0.0%	0.0%
Columbus, OH – Office	$31.0	4.8%	-0.1%
Columbus, OH – Other	$0.0	0.0%	0.0%
Columbus, OH – Retail	$107.9	13.1%	-1.4%
Columbus, OH – Self Storage	$0.0	0.0%	0.0%
Dallas – Dallas-Fort Worth-Arlington, TX MSA	$228.2	0.7%	-0.1%
Dallas – Hotel	$76.2	2.2%	-0.1%
Dallas – Industrial	$0.0	0.0%	-0.1%
Dallas – Multifamily	$8.5	0.0%	0.0%
Dallas – Office	$101.0	3.2%	-0.3%
Dallas – Other	$4.9	0.2%	0.0%
Dallas – Retail	$37.7	1.8%	-1.5%
Dallas – Self Storage	$0.0	0.0%	0.0%
Denver – Denver-Aurora, CO MSA	$820.2	5.2%	1.9%
Denver – Hotel	$31.6	4.1%	1.5%
Denver – Industrial	$0.0	0.0%	0.0%
Denver – Multifamily	$0.0	0.0%	0.0%
Denver – Office	$675.9	32.4%	14.2%
Denver – Other	$66.4	7.0%	0.1%
Denver – Retail	$46.2	3.4%	-0.1%
Denver – Self Storage	$0.0	0.0%	0.0%
Detroit – Detroit-Warren-Livonia, MI MSA	$265.5	2.5%	0.3%
Detroit – Hotel	$84.0	11.4%	-0.4%
Detroit – Industrial	$20.4	3.3%	3.3%
Detroit – Multifamily	$0.0	0.0%	0.0%
Detroit – Office	$18.2	0.8%	0.6%
Detroit – Other	$0.0	0.0%	0.0%
Detroit – Retail	$142.8	9.5%	-0.6%
Detroit – Self Storage	$0.0	0.0%	0.0%
Hartford – Hartford-West Hartford-East Hartford, CT MSA	$237.9	8.9%	-0.1%
Hartford – Hotel	$56.7	42.3%	-1.0%
Hartford – Industrial	$0.0	0.0%	0.0%
Hartford – Multifamily	$0.0	0.0%	0.0%
Hartford – Office	$25.1	9.2%	0.0%
Hartford – Other	$0.0	0.0%	0.0%
Hartford – Retail	$156.1	47.9%	1.2%
Hartford – Self Storage	$0.0	0.0%	0.0%
Houston – Houston-Sugar Land-Baytown, TX MSA	$1,177.3	4.4%	-0.1%
Houston – Hotel	$463.6	44.9%	-2.9%
Houston – Industrial	$58.8	8.9%	8.9%
Houston – Multifamily	$12.1	0.1%	-0.1%
Houston – Office	$505.4	14.4%	1.4%
Houston – Other	$32.4	5.1%	5.1%
Houston – Retail	$105.0	2.1%	-1.4%
Houston – Self Storage	$0.0	0.0%	0.0%
Indianapolis – Indianapolis-Carmel, IN MSA	$175.8	2.9%	0.2%
Indianapolis – Hotel	$110.2	17.2%	0.0%
Indianapolis – Industrial	$0.0	0.0%	0.0%
Indianapolis – Multifamily	$0.0	0.0%	0.0%
Indianapolis – Office	$60.1	10.3%	0.0%
Indianapolis – Other	$0.0	0.0%	0.0%
Indianapolis – Retail	$5.6	1.6%	-0.1%
Indianapolis – Self Storage	$0.0	0.0%	0.0%
Jacksonville – Jacksonville, FL MSA	$111.9	2.0%	-0.1%
Jacksonville – Hotel	$0.0	0.0%	0.0%
Jacksonville – Industrial	$0.0	0.0%	0.0%
Jacksonville – Multifamily	$0.0	0.0%	0.0%
Jacksonville – Office	$0.0	0.0%	0.0%
Jacksonville – Other	$0.0	0.0%	0.0%
Jacksonville – Retail	$111.9	28.6%	0.0%
Jacksonville – Self Storage	$0.0	0.0%	0.0%
Kansas City – Kansas City, MO-KS MSA	$81.2	1.4%	0.1%
Kansas City – Hotel	$28.9	11.4%	-1.0%
Kansas City – Industrial	$0.0	0.0%	0.0%
Kansas City – Multifamily	$3.8	0.1%	0.1%
Kansas City – Office	$0.0	0.0%	0.0%
Kansas City – Other	$0.0	0.0%	0.0%
Kansas City – Retail	$48.4	8.4%	0.4%
Kansas City – Self Storage	$0.0	0.0%	0.0%
Las Vegas – Las Vegas-Paradise, NV MSA	$258.4	1.2%	-0.1%
Las Vegas – Hotel	$0.0	0.0%	0.0%
Las Vegas – Industrial	$0.0	0.0%	0.0%
Las Vegas – Multifamily	$0.0	0.0%	0.0%
Las Vegas – Office	$0.0	0.0%	-0.5%
Las Vegas – Other	$0.0	0.0%	0.0%
Las Vegas – Retail	$258.4	6.6%	0.2%
Las Vegas – Self Storage	$0.0	0.0%	0.0%
Los Angeles – Los Angeles-Long Beach-Santa Ana, CA MSA	$1,009.2	1.8%	0.2%
Los Angeles – Hotel	$84.3	1.4%	-1.3%
Los Angeles – Industrial	$0.0	0.0%	0.0%
Los Angeles – Multifamily	$270.0	1.2%	1.2%
Los Angeles – Office	$34.3	0.3%	-0.3%
Los Angeles – Other	$56.5	1.6%	0.0%
Los Angeles – Retail	$564.2	6.8%	-2.3%
Los Angeles – Self Storage	$0.0	0.0%	0.0%
Louisville – Louisville/Jefferson County, KY-IN MSA	$70.4	2.3%	0.0%
Louisville – Hotel	$0.0	0.0%	0.0%
Louisville – Industrial	$0.0	0.0%	0.0%
Louisville – Multifamily	$0.0	0.0%	0.0%
Louisville – Office	$0.0	0.0%	0.0%
Louisville – Other	$0.0	0.0%	0.0%
Louisville – Retail	$70.4	14.3%	-0.4%
Louisville – Self Storage	$0.0	0.0%	0.0%
Memphis – Memphis, TN-AR-MS MSA	$72.9	3.0%	0.0%
Memphis – Hotel	$12.4	5.4%	-0.6%
Memphis – Industrial	$0.0	0.0%	0.0%
Memphis – Multifamily	$0.0	0.0%	0.0%
Memphis – Office	$0.0	0.0%	0.0%
Memphis – Other	$0.0	0.0%	0.0%
Memphis – Retail	$60.6	16.7%	0.0%
Memphis – Self Storage	$0.0	0.0%	0.0%
Miami – Miami-Fort Lauderdale-Pompano Beach, FL MSA	$267.7	1.0%	0.0%
Miami – Hotel	$40.5	0.8%	0.0%
Miami – Industrial	$0.0	0.0%	-0.4%
Miami – Multifamily	$0.0	0.0%	0.0%
Miami – Office	$4.0	0.2%	0.0%
Miami – Other	$0.0	0.0%	0.0%
Miami – Retail	$223.1	4.1%	0.2%
Miami – Self Storage	$0.0	0.0%	0.0%
Milwaukee – Milwaukee-Waukesha-West Allis, WI MSA	$219.8	8.7%	0.1%
Milwaukee – Hotel	$16.6	10.3%	0.0%
Milwaukee – Industrial	$0.0	0.0%	0.0%
Milwaukee – Multifamily	$0.0	0.0%	0.0%
Milwaukee – Office	$96.8	17.7%	0.8%
Milwaukee – Other	$0.2	0.2%	0.0%
Milwaukee – Retail	$106.1	23.0%	-0.6%
Milwaukee – Self Storage	$0.0	0.0%	0.0%
Minneapolis – Minneapolis-St. Paul-Bloomington, MN-WI MSA	$1,728.9	20.4%	0.1%
Minneapolis – Hotel	$239.7	39.0%	0.3%
Minneapolis – Industrial	$0.0	0.0%	0.0%
Minneapolis – Multifamily	$20.5	0.7%	0.7%
Minneapolis – Office	$64.6	3.2%	-0.1%
Minneapolis – Other	$4.1	0.8%	-0.2%
Minneapolis – Retail	$1,400.0	74.2%	-2.9%
Minneapolis – Self Storage	$0.0	0.0%	0.0%
Nashville – Nashville-Davidson-Murfreesboro-Franklin, TN MSA	$88.5	1.4%	0.5%
Nashville – Hotel	$51.9	3.6%	0.0%
Nashville – Industrial	$0.0	0.0%	0.0%
Nashville – Multifamily	$0.0	0.0%	0.0%
Nashville – Office	$23.5	4.9%	4.9%
Nashville – Other	$0.0	0.0%	0.0%
Nashville – Retail	$13.1	1.8%	0.5%
Nashville – Self Storage	$0.0	0.0%	0.0%
New Orleans – New Orleans-Metairie-Kenner, LA MSA	$132.1	3.7%	0.0%
New Orleans – Hotel	$59.9	5.1%	-0.1%
New Orleans – Industrial	$0.0	0.0%	0.0%
New Orleans – Multifamily	$8.3	0.9%	0.0%
New Orleans – Office	$27.1	5.5%	0.5%
New Orleans – Other	$14.7	9.5%	0.0%
New Orleans – Retail	$22.0	3.2%	0.2%
New Orleans – Self Storage	$0.0	0.0%	0.0%
New York City – New York-Northern New Jersey-Long Island, NY-NJ-PA MSA	$6,843.7	5.0%	0.0%
New York City – Hotel	$907.4	23.2%	-1.4%
New York City – Industrial	$98.7	2.3%	-0.1%
New York City – Multifamily	$261.5	0.7%	0.1%
New York City – Office	$1,921.6	3.8%	0.8%
New York City – Other	$1,563.7	6.3%	-1.3%
New York City – Retail	$2,090.8	15.2%	-0.8%
New York City – Self Storage	$0.0	0.0%	0.0%
Orlando – Orlando-Kissimmee, FL MSA	$114.0	1.1%	-0.2%
Orlando – Hotel	$27.9	1.0%	-0.9%
Orlando – Industrial	$0.0	0.0%	0.0%
Orlando – Multifamily	$0.0	0.0%	0.0%
Orlando – Office	$57.7	13.5%	0.5%
Orlando – Other	$0.0	0.0%	0.0%
Orlando – Retail	$28.5	3.1%	0.0%
Orlando – Self Storage	$0.0	0.0%	0.0%
Philadelphia – Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA	$832.6	3.9%	0.2%
Philadelphia – Hotel	$98.9	10.7%	3.0%
Philadelphia – Industrial	$10.4	0.3%	0.0%
Philadelphia – Multifamily	$41.2	0.4%	-0.4%
Philadelphia – Office	$285.0	6.7%	1.2%
Philadelphia – Other	$378.0	30.6%	0.6%
Philadelphia – Retail	$19.2	0.9%	0.0%
Philadelphia – Self Storage	$0.0	0.0%	0.0%
Phoenix – Phoenix-Mesa-Scottsdale, AZ MSA	$222.5	1.1%	-0.1%
Phoenix – Hotel	$32.0	1.9%	-0.1%
Phoenix – Industrial	$0.0	0.0%	0.0%
Phoenix – Multifamily	$0.0	0.0%	0.0%
Phoenix – Office	$55.8	2.5%	-0.1%
Phoenix – Other	$0.0	0.0%	0.0%
Phoenix – Retail	$134.7	6.1%	-2.3%
Phoenix – Self Storage	$0.0	0.0%	0.0%
Pittsburgh – Pittsburgh, PA MSA	$256.2	5.5%	0.3%
Pittsburgh – Hotel	$26.7	12.8%	4.1%
Pittsburgh – Industrial	$0.0	0.0%	0.0%
Pittsburgh – Multifamily	$0.1	0.0%	0.0%
Pittsburgh – Office	$104.5	10.0%	0.4%
Pittsburgh – Other	$117.1	33.1%	0.0%
Pittsburgh – Retail	$7.8	1.3%	0.0%
Pittsburgh – Self Storage	$0.0	0.0%	0.0%
Portland – Portland-Vancouver-Beaverton, OR-WA MSA	$532.5	6.0%	-2.2%
Portland – Hotel	$296.3	34.0%	-4.3%
Portland – Industrial	$0.0	0.0%	0.0%
Portland – Multifamily	$0.0	0.0%	-0.2%
Portland – Office	$25.3	5.4%	2.3%
Portland – Other	$0.0	0.0%	0.0%
Portland – Retail	$211.0	43.0%	0.2%
Portland – Self Storage	$0.0	0.0%	0.0%
Raleigh – Raleigh-Cary, NC MSA	$25.9	0.7%	0.0%
Raleigh – Hotel	$15.3	6.6%	-0.6%
Raleigh – Industrial	$0.0	0.0%	0.0%
Raleigh – Multifamily	$0.0	0.0%	0.0%
Raleigh – Office	$0.0	0.0%	0.0%
Raleigh – Other	$0.0	0.0%	0.0%
Raleigh – Retail	$10.6	3.9%	-0.2%
Raleigh – Self Storage	$0.0	0.0%	0.0%
Richmond – Richmond, VA MSA	$158.5	4.8%	-0.4%
Richmond – Hotel	$0.0	0.0%	0.0%
Richmond – Industrial	$0.0	0.0%	0.0%
Richmond – Multifamily	$0.0	0.0%	0.0%
Richmond – Office	$0.0	0.0%	-2.6%
Richmond – Other	$12.9	8.9%	0.0%
Richmond – Retail	$145.7	30.7%	-1.5%
Richmond – Self Storage	$0.0	0.0%	0.0%
Riverside – Riverside-San Bernardino-Ontario, CA MSA	$311.5	3.0%	0.2%
Riverside – Hotel	$51.3	11.2%	-0.2%
Riverside – Industrial	$0.0	0.0%	0.0%
Riverside – Multifamily	$0.0	0.0%	0.0%
Riverside – Office	$0.0	0.0%	0.0%
Riverside – Other	$0.0	0.0%	-2.5%
Riverside – Retail	$260.3	12.9%	1.5%
Riverside – Self Storage	$0.0	0.0%	0.0%
Sacramento – Sacramento-Arden-Arcade-Roseville, CA MSA	$6.1	0.1%	0.0%
Sacramento – Hotel	$0.0	0.0%	0.0%
Sacramento – Industrial	$0.0	0.0%	0.0%
Sacramento – Multifamily	$0.0	0.0%	0.0%
Sacramento – Office	$6.1	0.8%	0.0%
Sacramento – Other	$0.0	0.0%	0.0%
Sacramento – Retail	$0.0	0.0%	0.0%
Sacramento – Self Storage	$0.0	0.0%	0.0%
Salt Lake City – Salt Lake City, UT MSA	$6.1	0.1%	0.0%
Salt Lake City – Hotel	$6.1	2.1%	-0.1%
Salt Lake City – Industrial	$0.0	0.0%	0.0%
Salt Lake City – Multifamily	$0.0	0.0%	0.0%
Salt Lake City – Office	$0.0	0.0%	0.0%
Salt Lake City – Other	$0.0	0.0%	0.0%
Salt Lake City – Retail	$0.0	0.0%	0.0%
Salt Lake City – Self Storage	$0.0	0.0%	0.0%
San Antonio – San Antonio, TX MSA	$140.1	2.1%	0.0%
San Antonio – Hotel	$16.7	6.2%	-0.1%
San Antonio – Industrial	$0.0	0.0%	0.0%
San Antonio – Multifamily	$7.9	0.2%	0.0%
San Antonio – Office	$0.0	0.0%	0.0%
San Antonio – Other	$0.0	0.0%	0.0%
San Antonio – Retail	$115.5	14.7%	0.5%
San Antonio – Self Storage	$0.0	0.0%	0.0%
San Diego – San Diego-Carlsbad-San Marcos, CA MSA	$46.4	0.4%	-0.1%
San Diego – Hotel	$39.4	3.3%	-0.1%
San Diego – Industrial	$0.0	0.0%	0.0%
San Diego – Multifamily	$4.2	0.1%	0.0%
San Diego – Office	$0.0	0.0%	0.0%
San Diego – Other	$0.0	0.0%	-1.3%
San Diego – Retail	$2.9	0.2%	0.0%
San Diego – Self Storage	$0.0	0.0%	0.0%
San Francisco – San Francisco-Oakland-Fremont, CA MSA	$733.0	2.7%	0.0%
San Francisco – Hotel	$100.7	2.5%	-1.0%
San Francisco – Industrial	$0.0	0.0%	0.0%
San Francisco – Multifamily	$459.5	5.8%	0.0%
San Francisco – Office	$86.8	0.9%	0.6%
San Francisco – Other	$38.6	1.4%	-0.6%
San Francisco – Retail	$47.4	4.3%	0.2%
San Francisco – Self Storage	$0.0	0.0%	0.0%
San Jose – San Jose-Sunnyvale-Santa Clara, CA MSA	$59.0	0.3%	0.0%
San Jose – Hotel	$35.5	0.5%	0.0%
San Jose – Industrial	$0.0	0.0%	0.0%
San Jose – Multifamily	$0.0	0.0%	0.0%
San Jose – Office	$23.5	0.3%	0.0%
San Jose – Other	$0.0	0.0%	0.0%
San Jose – Retail	$0.0	0.0%	0.0%
San Jose – Self Storage	$0.0	0.0%	0.0%
Seattle – Seattle-Tacoma-Bellevue, WA MSA	$61.5	0.3%	0.1%
Seattle – Hotel	$61.5	4.4%	1.8%
Seattle – Industrial	$0.0	0.0%	0.0%
Seattle – Multifamily	$0.0	0.0%	0.0%
Seattle – Office	$0.0	0.0%	0.0%
Seattle – Other	$0.0	0.0%	0.0%
Seattle – Retail	$0.0	0.0%	0.0%
Seattle – Self Storage	$0.0	0.0%	0.0%
St. Louis – St. Louis, MO-IL MSA	$215.1	5.1%	0.0%
St. Louis – Hotel	$1.7	0.6%	0.1%
St. Louis – Industrial	$0.0	0.0%	0.0%
St. Louis – Multifamily	$3.2	0.2%	0.0%
St. Louis – Office	$0.0	0.0%	0.0%
St. Louis – Other	$19.5	3.9%	0.0%
St. Louis – Retail	$190.7	20.7%	0.1%
St. Louis – Self Storage	$0.0	0.0%	0.0%
Tampa – Tampa-St. Petersburg-Clearwater, FL	$192.5	2.0%	0.7%
Tampa – Hotel	$59.0	8.2%	-0.3%
Tampa – Industrial	$0.0	0.0%	0.0%
Tampa – Multifamily	$0.0	0.0%	0.0%
Tampa – Office	$23.3	3.1%	-0.3%
Tampa – Other	$0.0	0.0%	0.0%
Tampa – Retail	$110.2	14.6%	9.5%
Tampa – Self Storage	$0.0	0.0%	0.0%
Tucson – Tucson, AZ MSA	$157.7	4.3%	-0.4%
Tucson – Hotel	$0.0	0.0%	0.0%
Tucson – Industrial	$0.0	0.0%	0.0%
Tucson – Multifamily	$0.0	0.0%	0.0%
Tucson – Office	$0.0	0.0%	0.0%
Tucson – Other	$0.0	0.0%	0.0%
Tucson – Retail	$157.7	15.3%	-4.1%
Tucson – Self Storage	$0.0	0.0%	0.0%
Virginia Beach – Virginia Beach-Norfolk-Newport News, VA-NC MSA	$177.3	3.6%	0.2%
Virginia Beach – Hotel	$13.6	3.1%	3.1%
Virginia Beach – Industrial	$0.0	0.0%	0.0%
Virginia Beach – Multifamily	$0.0	0.0%	0.0%
Virginia Beach – Office	$0.0	0.0%	0.0%
Virginia Beach – Other	$0.0	0.0%	0.0%
Virginia Beach – Retail	$163.7	18.9%	-1.2%
Virginia Beach – Self Storage	$0.0	0.0%	0.0%
Washington, DC – Washington-Arlington-Alexandria, DC-VA-MD-WV MSA	$606.5	1.8%	-0.8%
Washington, DC – Hotel	$35.7	3.1%	-0.2%
Washington, DC – Industrial	$0.0	0.0%	0.0%
Washington, DC – Multifamily	$0.0	0.0%	-1.5%
Washington, DC – Office	$463.5	6.1%	0.0%
Washington, DC – Other	$32.9	2.1%	-0.1%
Washington, DC – Retail	$74.3	2.2%	-0.1%
Washington, DC – Self Storage	$0.0	0.0%	0.0%
Grand Total	$24,060.9	3.2%	0.1%

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, Ginnie Mae, FHA/HUD, and Freddie Mac loan and property data.

January 2023 Delinquency Report

By

CRED iQ

-

February 2, 2023

0

*DQ = All delinquent CMBS loans in the conduit and SASB universe, including specially serviced and non-specially serviced loans*
*SS = All specially serviced CMBS loans in the conduit and SASB universe, including current, delinquent and REO*
*DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both*

The CRED iQ delinquency rate for CMBS started 2023 with a downswing compared to the previous month. The delinquency rate for the January 2023 reporting period was 3.25%, which was approximately a 7% decline compared to 3.49% as of December 2022. The delinquency rate is equal to the percentage of all delinquent specially serviced loans and delinquent non-specially serviced loans, for CRED iQ’s sample universe of $600+ billion in CMBS conduit and single asset single-borrower (SASB) loans. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that are with the special servicer (delinquent and non-delinquent), also declined month-over-month to 4.71% from 5.16%. Aggregating the two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 4.84% of CMBS loans that are specially serviced, delinquent, or a combination of both. In parallel with the delinquency rate and special servicing rate, the overall distressed rate decreased compared to the prior month’s distressed rate of 5.33%. Distressed rates generally track slightly higher than special servicing rates as most delinquent loans are also with the special servicer.

By property type, loans secured by office properties exhibited the sharpest jump in delinquency. The delinquency rate for office increased to 2.16%, compared to 1.76% as of December 2022. The surge was equal to a 23% month-over-month increase. Office delinquency as of January 2023 is at its highest level over the past 12 months. One of the largest loans to become delinquent this month was a $120 million mortgage secured by Charlotte Plaza, a 632,283-SF office tower in Charlotte, NC. The loan defaulted at maturity in January 2023 after multiple years of occupancy struggles.

Retail maintained its position as the property type with the highest delinquency rate, equal to 7.43% as of January 2023. The delinquency rate for lodging was second-highest, equal to 4.32%. Both retail and lodging delinquency rates exhibited month-over-month declines. The delinquency rate for multifamily (1.87%) declined compared to December 2022 while the delinquency rate for industrial (0.38%) increased modestly.

Focusing on special servicing rates by property type, loans secured by office (4.24%) exhibited the largest month-over-month increase among all property types. As of January 2023, the special servicing rate for office was at a 12-month high. The sharp increase in the percentage of specially serviced loans was driven by a $277.1 million senior floating-rate mortgage secured by the Wells Fargo Center, a 52-story, 1.2 million-SF office tower located in Denver, CO. The loan had an initial maturity date in December 2021, but the borrower exercised one of its three, one-year extension options at the time, which pushed maturity to December 2022. The extended December 2022 maturity date was synchronous with the expiration of an interest rate cap agreement. The interest rate expiration may have contributed to the borrower’s decision not to move forward with a second maturity extension given the relatively high costs of one in a rising rate environment. The loan went into maturity default in December 2022 and transferred to special servicing. This is the second consecutive month with a high-profile maturity default reported for a loan secured by a Denver office tower. Last month, CRED iQ’s December 2022 Delinquency Report detailed the special servicing transfer of Republic Plaza, which was also caused by maturity default.

The special servicing rates for multifamily (2.68%) and industrial (0.41%) increased compared to last month. Retail (10.99%) and lodging (5.47%) exhibited declines in respective percentages of specially serviced loans.

*DQ + SS = All distressed CMBS loans in the conduit and SASB universe that are delinquent, specially serviced, or a combination of both*

CRED iQ’s CMBS distressed rate (DQ + SS%) by property type accounts for loans that qualify for either delinquent or special servicing subsets. This month, the overall distressed rate for CMBS declined to 4.71%, which was aided by lower distress in lodging and retail. However, the distressed rate for office increased by 14% to 4.37% this month following the aforementioned maturity defaults of loans secured by Charlotte Plaza and Wells Fargo Center. For additional information about these two loans, click View Details below:

	[View Details]	[View Details]
Loan	Wells Fargo Center	Charlotte Plaza
Balance	$243,621,128	$120,000,000
Special Servicer Transfer Date	12/21/2022	–

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $2.0 trillion of commercial real estate.

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2023 Multifamily Maturities by Market

By

CRED iQ

-

January 26, 2023

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CRED iQ is tracking approximately $25 billion of securitized debt secured by multifamily properties that is scheduled to mature in 2023. Exploring upcoming CRE loan maturities can be beneficial for constituents in the commercial real estate industry looking to make more informed decisions to identify potential opportunities for growth. Lenders and mortgage originators can develop a better understanding of market positions while capital providers and distressed investors can dial in on targeted deployments.

Serving as a more extensive analysis and supplement to CRED iQ’s year-end 2023 CRE Maturity Outlook report, we took the opportunity to focus on near-term maturing loans with multifamily collateral. Although some multifamily metrics, such as rent growth, have been softening, multifamily still remains among the top-performing CRE property types in 2023. CRED iQ’s distressed rate for multifamily CMBS, which includes both delinquent and special serviced loans, was 2.72%, which was lower than retail, lodging, and office.

Altogether, CRED iQ identified more than 2,300 multifamily loans with a 2023 maturity date, totaling approximately $25 billion by aggregate balance. Outstanding debt figures comprise all securitized mortgages in CRED iQ’s $2 trillion commercial real estate database, including CMBS, Freddie Mac, Fannie, Mae, and Ginnie Mae loans. Looking ahead, the multifamily maturity wave picks up in 2024 with $49 billion in scheduled maturities. Aggregate scheduled multifamily maturities remain relatively flat between $30 and $40 billion from 2025 through 2027 and then surge to north of $80 billion in 2028, towards $100 billion a year by 2029.

Stratifying 2023 multifamily loans by the underlying properties’ geographical area gives a sense of which markets have elevated opportunity for refinancing activity. Examining the Top 20 markets with the highest amount of multifamily debt coming due in 2023, we observed that New York City leads all Metropolitan Statistical Areas (MSAs) with $2.3 billion. The NYC MSA accounts for 9% of 2023 multifamily maturities. The Dallas-Fort Worth MSA comes in a close second-place with $1.9 billion of multifamily mortgage debt that is scheduled to mature in 2023. Other MSAs with more than $1 billion of multifamily loans due to mature in 2023 include Atlanta, Los Angeles, and Austin.

Overlaying distressed rates for each market, we find that 12 of the Top 20 markets with 2023 multifamily maturities, or 60% in total, have nominal levels of distress. Only two of these markets – Washington, DC and San Francisco – have distressed rates greater than 1%

Finally, we also cross-paneled 2023 multifamily loan maturities by securitization type and total maturing debt by market. This table gives a view of which markets have the highest outstanding maturing balances in 2023 by securitization vehicle. For example, the majority of 2023 multifamily loan maturities are securitized in CRE CLOs and Single-Borrower Large-Loan transactions. NYC is the market with the highest amount of maturing debt among CRE CLOs, but the Atlanta MSA has the highest multifamily maturing debt amount for Single-Borrower Large-Loan securitizations. It is also worth noting that most loans in the CRE CLO and Single-Borrower subsets have embedded maturity extension options that can push refinancing beyond 2023. Los Angeles claims the highest ranking for 2023 multifamily loan maturities for Fannie Mae securitizations and Dallas-Fort Worth has the highest rank for Freddie Mac securitizations.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $2.0 trillion of commercial real estate.

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CMBS – December 2022 Distressed Workouts and Payoffs

By

CRED iQ

-

January 10, 2023

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CMBS conduit transactions incurred approximately $130 million in realized losses during December 2022 via the workout of distressed assets. CRED iQ identified nine workouts classified as dispositions, liquidations, or discounted payoffs in December 2022. All nine workouts were resolved with losses to respective CMBS trusts, which contrasted with prior months when at least some workouts were able to be resolved without losses. Loss severities for the month of December ranged from 7% to 100%, based on outstanding balances at disposition. Aggregate realized losses in December 2022 were approximately 12% higher than November despite fewer workouts. On a monthly basis, realized losses for CMBS transactions averaged approximately $135.9 million during 2022.

By property type, workouts were concentrated in retail, accounting for five of the nine distressed resolutions. Distressed workouts for retail properties had the highest total of aggregate realized losses ($104 million), which accounted for 74% of total losses for the month. The largest individual realized loss from CRED iQ’s observations was from a note sale of an $84.7 million mortgage secured by Blackpoint Puerto Rico Portfolio, a six-property portfolio of retail properties located in Puerto Rico. Prior to its distressed workout, the properties had been in special servicing for 11 years. The loan’s resolution resulted in a loss severity of 100% based on outstanding balance at disposition. The workout also represented the largest individual loss severity and largest individual workout by outstanding debt amount in December 2022.

The second- and third-highest individual loss amounts for CMBS workouts this month were associated with lodging properties. Lodging was the only other property type besides retail with multiple distressed workouts in December. An REO 303-key hotel, Hilton College Station, with $30.6 million in outstanding debt was liquidated in late-November 2022. The property transferred to special servicing in August 2019, became REO in June 2020, and was ultimately auctioned for sale in September 2022 for a price slightly higher than the asset’s December 2021 appraisal value of $20.7 million ($68,317 per key). The liquidation resulted in $14.9 million in principal losses, equal to a 49% loss severity. The second lodging distressed workout was also a liquidation of an REO hotel — Hampton Inn Suites – Yonkers. The property had outstanding debt of $22.1 million and was liquidated with a 38% loss severity after more than five years in special servicing.

Excluding defeased loans, there was approximately $7 billion in securitized debt among CMBS conduit, Single-Borrower Large-Loan, and Freddie Mac securitizations that was paid off or liquidated in December 2022, which was approximately a 4% decrease compared to $8.2 billion in November 2022. In December, 2% of the loan resolutions were categorized as dispositions, liquidations, or discounted payoffs. The percentage of distressed workouts was 6% in the prior month. Approximately 36% of the loans were paid off with prepayment penalties, which was in line with the prior month.

Excluding Freddie Mac securitizations, multifamily had the highest total of outstanding debt payoff in December with approximately 37% of the total by balance. Retail and office were the next property types with the highest outstanding debt payoff with 20% and 18% of the total, respectively. Among the largest individual payoffs was a $481 million mortgage secured by a 43-property portfolio located across 10 states and owned by the Chetrit Group.

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $2.0 trillion of commercial real estate.

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Market Delinquency Tracker – December 2022

By

CRED iQ

-

January 4, 2023

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CRED iQ monitors distressed rates and market performance for nearly 400 MSAs across the United States, covering over $900 billion in outstanding commercial real estate (CRE) debt. Distressed rates (DQ + SS%) include loans that are specially serviced, delinquent, or a combination of both. Distressed rates and month-over-month changes for data reported as of December 2022 are presented below for the 50 largest MSAs, broken out by property type for a granular view of distress by market-sector.

Of the 50 largest MSAs tracked by CRED iQ, half exhibited month-over-month increases in the percentage of distressed CRE loans with an average monthly increase of 0.7%. The other half of the 50 largest MSAs had an average improvement in distress of 0.2%. Notable markets with increased levels of distress this month included Pittsburgh (+4.0%), Birmingham, AL (+2.4%), and Cleveland (+1.9%). The Memphis, TN market (-0.5%) exhibited the sharpest percentage decline in distressed commercial real estate loans during December 2022.

For a more granular analysis of the Top 50 markets, CRED iQ further delineated individual market distressed rates by property type for a comprehensive view by market-sector. The office sector accounted for three of the five-largest month-over-month increases in distress by market-sector. Multiple large-balance office loans transferred to special servicing in December 2022, including a $243.6 million mortgage secured by Republic Plaza in Denver, CO, a $53.9 million mortgage secured by Belk Headquarters in Charlotte, NC, and a $41.7 million mortgage secured by Parkway Center in Pittsburgh, PA. As noted, the Pittsburgh MSA exhibited the highest increase in distress this month among primary markets. Much of the increase in distress can be attributed to a $98.2 million loan secured by a 1.5 million-sf mixed-use (office and retail) building located at 3 Gateway Center. The loan transferred to special servicing in late-November 2022 ahead of its January 2023 maturity date. Imminent maturity default was cited as the reason for distress. The office tower, which has a retail component, has had issues attaining occupancy levels above 80% for several years.

The lodging sector was associated with five of the 10 largest percentage declines in distressed rates across market-sectors during December 2022, including the Chicago hotel market-sector (-1.7%). A $20.7 million loan secured by the IHG-flagged EVEN Hotel Chicago – Tinley Park returned to the master servicer this month after initially transferring to special servicing in October 2021.

The Minneapolis MSA has the highest overall distressed rate at 20.3%, which was in line with previous months. Birmingham (11.0%), Cleveland (10.3%), Hartford (9.0%), and Milwaukee (8.6%) comprise the remaining markets with the highest rates of distress. The Sacramento MSA (0.1%) displaced Jacksonville this month as the market with the lowest percentage of distress among the Top 50 MSAs after favorable workouts in the retail and lodging sectors.

For the full Market DelinQuency Tracker Report, download here:

The-CRED-DQ-Market-Delinquency-Tracker-December-2022 Download

MSA – Property Type	DQ/SS (millions)	DS/SS (%)	Monthly Change
Allentown-Bethlehem-Easton, PA-NJ MSA	$78.0	2.5%	-0.1%
Allentown – Hotel	$0.7	1.9%	-0.2%
Allentown – Industrial	$0.0	0.0%	0.0%
Allentown – Multifamily	$0.0	0.0%	0.0%
Allentown – Office	$58.3	17.9%	-1.2%
Allentown – Other	$0.0	0.0%	0.0%
Allentown – Retail	$19.0	5.1%	0.0%
Allentown – Self Storage	$0.0	0.0%	0.0%
Atlanta – Atlanta-Sandy Springs-Marietta, GA MSA	$519.5	1.9%	0.2%
Atlanta – Hotel	$82.2	3.4%	-0.4%
Atlanta – Industrial	$0.0	0.0%	0.0%
Atlanta – Multifamily	$0.0	0.0%	-0.1%
Atlanta – Office	$56.3	2.6%	-0.7%
Atlanta – Other	$0.0	0.0%	0.0%
Atlanta – Retail	$381.1	18.8%	2.7%
Atlanta – Self Storage	$0.0	0.0%	0.0%
Austin – Austin-Round Rock, TX MSA	$111.5	1.2%	-0.4%
Austin – Hotel	$58.2	6.6%	0.8%
Austin – Industrial	$0.0	0.0%	0.0%
Austin – Multifamily	$0.0	0.0%	-0.6%
Austin – Office	$0.0	0.0%	0.0%
Austin – Other	$4.2	1.2%	-1.4%
Austin – Retail	$49.1	6.5%	-0.4%
Austin – Self Storage	$0.0	0.0%	0.0%
Baltimore – Baltimore-Towson, MD MSA	$356.4	3.9%	0.1%
Baltimore – Hotel	$43.9	9.4%	-0.5%
Baltimore – Industrial	$0.0	0.0%	0.0%
Baltimore – Multifamily	$3.8	0.1%	0.0%
Baltimore – Office	$46.7	5.2%	0.4%
Baltimore – Other	$11.6	4.9%	-4.4%
Baltimore – Retail	$250.5	22.6%	0.0%
Baltimore – Self Storage	$0.0	0.0%	0.0%
Birmingham – Birmingham-Hoover, AL MSA	$342.2	11.0%	2.4%
Birmingham – Hotel	$0.0	0.0%	0.0%
Birmingham – Industrial	$0.0	0.0%	0.0%
Birmingham – Multifamily	$63.2	4.5%	4.4%
Birmingham – Office	$94.7	18.3%	-0.7%
Birmingham – Other	$0.0	0.0%	0.0%
Birmingham – Retail	$184.4	25.7%	-0.2%
Birmingham – Self Storage	$0.0	0.0%	-2.6%
Boston – Boston-Cambridge-Quincy, MA-NH MSA	$123.3	0.6%	-0.1%
Boston – Hotel	$19.3	1.2%	-0.5%
Boston – Industrial	$0.0	0.0%	0.0%
Boston – Multifamily	$0.0	0.0%	0.0%
Boston – Office	$14.5	0.2%	0.0%
Boston – Other	$0.0	0.0%	0.0%
Boston – Retail	$89.5	5.5%	-0.2%
Boston – Self Storage	$0.0	0.0%	0.0%
Bridgeport – Bridgeport-Stamford-Norwalk, CT MSA	$198.9	5.0%	0.4%
Bridgeport – Hotel	$38.6	29.9%	-1.1%
Bridgeport – Industrial	$0.0	0.0%	0.0%
Bridgeport – Multifamily	$0.0	0.0%	0.0%
Bridgeport – Office	$150.5	14.0%	1.1%
Bridgeport – Other	$9.8	2.5%	-0.1%
Bridgeport – Retail	$0.0	0.0%	0.0%
Bridgeport – Self Storage	$0.0	0.0%	0.0%
Charlotte – Charlotte-Gastonia-Concord, NC-SC MSA	$279.1	3.7%	0.7%
Charlotte – Hotel	$35.4	4.3%	-1.2%
Charlotte – Industrial	$0.0	0.0%	0.0%
Charlotte – Multifamily	$0.0	0.0%	0.0%
Charlotte – Office	$75.3	8.1%	8.1%
Charlotte – Other	$85.0	31.4%	-5.7%
Charlotte – Retail	$83.5	10.2%	0.8%
Charlotte – Self Storage	$0.0	0.0%	0.0%
Chicago – Chicago-Naperville-Joliet, IL-IN-WI MSA	$2,187.6	7.3%	-0.2%
Chicago – Hotel	$748.4	30.8%	-1.7%
Chicago – Industrial	$0.0	0.0%	0.0%
Chicago – Multifamily	$52.9	0.5%	0.0%
Chicago – Office	$962.1	11.4%	0.4%
Chicago – Other	$208.6	8.2%	0.0%
Chicago – Retail	$215.7	7.0%	-2.1%
Chicago – Self Storage	$0.0	0.0%	0.0%
Cincinnati – Cincinnati-Middletown, OH-KY-IN MSA	$137.6	3.6%	0.7%
Cincinnati – Hotel	$87.1	30.0%	0.5%
Cincinnati – Industrial	$0.0	0.0%	0.0%
Cincinnati – Multifamily	$0.0	0.0%	-0.1%
Cincinnati – Office	$0.0	0.0%	0.0%
Cincinnati – Other	$6.8	2.6%	0.0%
Cincinnati – Retail	$43.6	7.9%	5.6%
Cincinnati – Self Storage	$0.0	0.0%	0.0%
Cleveland – Cleveland-Elyria-Mentor, OH MSA	$442.5	10.3%	1.9%
Cleveland – Hotel	$84.9	46.4%	-1.1%
Cleveland – Industrial	$0.0	0.0%	0.0%
Cleveland – Multifamily	$1.1	0.1%	-0.2%
Cleveland – Office	$175.9	18.8%	8.9%
Cleveland – Other	$172.8	42.9%	0.2%
Cleveland – Retail	$7.7	1.1%	-0.1%
Cleveland – Self Storage	$0.0	0.0%	-1.7%
Columbus, OH – Columbus, OH MSA	$159.0	2.3%	-0.2%
Columbus, OH – Hotel	$19.7	7.0%	-2.7%
Columbus, OH – Industrial	$0.0	0.0%	0.0%
Columbus, OH – Multifamily	$0.0	0.0%	-0.2%
Columbus, OH – Office	$31.1	4.9%	0.8%
Columbus, OH – Other	$0.0	0.0%	0.0%
Columbus, OH – Retail	$108.2	14.4%	-0.6%
Columbus, OH – Self Storage	$0.0	0.0%	0.0%
Dallas – Dallas-Fort Worth-Arlington, TX MSA	$258.3	0.8%	0.0%
Dallas – Hotel	$77.5	2.2%	-0.3%
Dallas – Industrial	$1.7	0.1%	0.0%
Dallas – Multifamily	$7.1	0.0%	0.0%
Dallas – Office	$101.1	3.4%	0.0%
Dallas – Other	$4.9	0.2%	0.0%
Dallas – Retail	$65.9	3.3%	-0.2%
Dallas – Self Storage	$0.0	0.0%	0.0%
Denver – Denver-Aurora, CO MSA	$508.9	3.2%	1.5%
Denver – Hotel	$18.3	2.6%	-0.6%
Denver – Industrial	$0.0	0.0%	0.0%
Denver – Multifamily	$0.0	0.0%	0.0%
Denver – Office	$377.9	18.1%	11.0%
Denver – Other	$66.4	6.9%	-3.1%
Denver – Retail	$46.2	3.5%	2.5%
Denver – Self Storage	$0.0	0.0%	0.0%
Detroit – Detroit-Warren-Livonia, MI MSA	$231.8	2.2%	-0.3%
Detroit – Hotel	$84.1	11.8%	-0.1%
Detroit – Industrial	$0.0	0.0%	0.0%
Detroit – Multifamily	$0.0	0.0%	0.0%
Detroit – Office	$3.7	0.2%	-0.6%
Detroit – Other	$0.0	0.0%	0.0%
Detroit – Retail	$143.9	10.1%	-0.9%
Detroit – Self Storage	$0.0	0.0%	0.0%
Hartford – Hartford-West Hartford-East Hartford, CT MSA	$239.5	9.0%	1.1%
Hartford – Hotel	$58.2	43.4%	20.0%
Hartford – Industrial	$0.0	0.0%	0.0%
Hartford – Multifamily	$0.0	0.0%	0.0%
Hartford – Office	$25.1	9.2%	-1.0%
Hartford – Other	$0.0	0.0%	0.0%
Hartford – Retail	$156.2	46.7%	-0.1%
Hartford – Self Storage	$0.0	0.0%	0.0%
Houston – Houston-Sugar Land-Baytown, TX MSA	$1,081.1	4.5%	0.2%
Houston – Hotel	$512.3	47.8%	5.7%
Houston – Industrial	$0.0	0.0%	0.0%
Houston – Multifamily	$22.3	0.1%	0.0%
Houston – Office	$441.2	13.0%	-0.7%
Houston – Other	$0.0	0.0%	-6.6%
Houston – Retail	$105.2	3.6%	0.9%
Houston – Self Storage	$0.0	0.0%	0.0%
Indianapolis – Indianapolis-Carmel, IN MSA	$176.1	2.7%	-0.5%
Indianapolis – Hotel	$110.4	17.2%	2.0%
Indianapolis – Industrial	$0.0	0.0%	0.0%
Indianapolis – Multifamily	$0.0	0.0%	-1.2%
Indianapolis – Office	$60.2	10.2%	-0.2%
Indianapolis – Other	$0.0	0.0%	0.0%
Indianapolis – Retail	$5.6	1.7%	-0.1%
Indianapolis – Self Storage	$0.0	0.0%	0.0%
Jacksonville – Jacksonville, FL MSA	$111.9	2.1%	0.0%
Jacksonville – Hotel	$0.0	0.0%	0.0%
Jacksonville – Industrial	$0.0	0.0%	0.0%
Jacksonville – Multifamily	$0.0	0.0%	-0.1%
Jacksonville – Office	$0.0	0.0%	0.0%
Jacksonville – Other	$0.0	0.0%	0.0%
Jacksonville – Retail	$111.9	28.6%	-0.5%
Jacksonville – Self Storage	$0.0	0.0%	0.0%
Kansas City – Kansas City, MO-KS MSA	$77.9	1.3%	-0.2%
Kansas City – Hotel	$29.5	12.5%	-0.5%
Kansas City – Industrial	$0.0	0.0%	0.0%
Kansas City – Multifamily	$0.0	0.0%	0.0%
Kansas City – Office	$0.0	0.0%	0.0%
Kansas City – Other	$0.0	0.0%	-10.3%
Kansas City – Retail	$48.5	8.0%	2.0%
Kansas City – Self Storage	$0.0	0.0%	0.0%
Las Vegas – Las Vegas-Paradise, NV MSA	$250.9	1.2%	0.2%
Las Vegas – Hotel	$0.0	0.0%	0.0%
Las Vegas – Industrial	$0.0	0.0%	0.0%
Las Vegas – Multifamily	$0.0	0.0%	0.0%
Las Vegas – Office	$4.1	0.5%	0.5%
Las Vegas – Other	$0.0	0.0%	0.0%
Las Vegas – Retail	$246.8	6.4%	0.8%
Las Vegas – Self Storage	$0.0	0.0%	0.0%
Los Angeles – Los Angeles-Long Beach-Santa Ana, CA MSA	$849.8	1.6%	-0.4%
Los Angeles – Hotel	$156.1	2.7%	-1.1%
Los Angeles – Industrial	$0.0	0.0%	0.0%
Los Angeles – Multifamily	$0.0	0.0%	-0.1%
Los Angeles – Office	$72.9	0.6%	-0.6%
Los Angeles – Other	$56.5	1.6%	-1.3%
Los Angeles – Retail	$564.3	9.1%	-0.4%
Los Angeles – Self Storage	$0.0	0.0%	0.0%
Louisville – Louisville/Jefferson County, KY-IN MSA	$71.1	2.3%	-0.3%
Louisville – Hotel	$0.0	0.0%	0.0%
Louisville – Industrial	$0.0	0.0%	0.0%
Louisville – Multifamily	$0.0	0.0%	0.0%
Louisville – Office	$0.0	0.0%	0.0%
Louisville – Other	$0.0	0.0%	0.0%
Louisville – Retail	$71.1	14.8%	0.1%
Louisville – Self Storage	$0.0	0.0%	0.0%
Memphis – Memphis, TN-AR-MS MSA	$73.5	3.0%	-0.5%
Memphis – Hotel	$12.8	6.0%	-0.1%
Memphis – Industrial	$0.0	0.0%	0.0%
Memphis – Multifamily	$0.0	0.0%	-0.5%
Memphis – Office	$0.0	0.0%	0.0%
Memphis – Other	$0.0	0.0%	-15.9%
Memphis – Retail	$60.7	16.6%	-0.2%
Memphis – Self Storage	$0.0	0.0%	0.0%
Miami – Miami-Fort Lauderdale-Pompano Beach, FL MSA	$262.8	1.0%	0.0%
Miami – Hotel	$40.6	0.8%	0.6%
Miami – Industrial	$1.9	0.4%	0.4%
Miami – Multifamily	$0.0	0.0%	0.0%
Miami – Office	$4.0	0.2%	0.0%
Miami – Other	$0.0	0.0%	0.0%
Miami – Retail	$216.3	3.9%	-0.7%
Miami – Self Storage	$0.0	0.0%	0.0%
Milwaukee – Milwaukee-Waukesha-West Allis, WI MSA	$216.6	8.6%	-0.4%
Milwaukee – Hotel	$16.7	10.4%	0.0%
Milwaukee – Industrial	$0.0	0.0%	0.0%
Milwaukee – Multifamily	$0.0	0.0%	0.0%
Milwaukee – Office	$93.4	16.9%	-1.2%
Milwaukee – Other	$0.2	0.2%	-0.4%
Milwaukee – Retail	$106.3	23.6%	-1.3%
Milwaukee – Self Storage	$0.0	0.0%	0.0%
Minneapolis – Minneapolis-St. Paul-Bloomington, MN-WI MSA	$1,717.3	20.3%	0.1%
Minneapolis – Hotel	$242.3	38.8%	-5.0%
Minneapolis – Industrial	$0.0	0.0%	0.0%
Minneapolis – Multifamily	$0.0	0.0%	0.0%
Minneapolis – Office	$70.9	3.4%	1.3%
Minneapolis – Other	$4.1	1.0%	-0.1%
Minneapolis – Retail	$1,400.0	77.1%	-0.3%
Minneapolis – Self Storage	$0.0	0.0%	0.0%
Nashville – Nashville-Davidson-Murfreesboro-Franklin, TN MSA	$61.3	1.0%	0.1%
Nashville – Hotel	$52.0	3.6%	0.5%
Nashville – Industrial	$0.0	0.0%	0.0%
Nashville – Multifamily	$0.0	0.0%	0.0%
Nashville – Office	$0.0	0.0%	0.0%
Nashville – Other	$0.0	0.0%	0.0%
Nashville – Retail	$9.4	1.3%	0.0%
Nashville – Self Storage	$0.0	0.0%	0.0%
New Orleans – New Orleans-Metairie-Kenner, LA MSA	$132.2	3.6%	0.1%
New Orleans – Hotel	$60.0	5.2%	0.1%
New Orleans – Industrial	$0.0	0.0%	0.0%
New Orleans – Multifamily	$8.3	0.9%	0.9%
New Orleans – Office	$27.1	5.0%	0.0%
New Orleans – Other	$14.7	9.5%	0.0%
New Orleans – Retail	$22.0	3.1%	-0.3%
New Orleans – Self Storage	$0.0	0.0%	0.0%
New York City – New York-Northern New Jersey-Long Island, NY-NJ-PA MSA	$6,421.4	5.0%	0.1%
New York City – Hotel	$941.4	24.6%	-1.3%
New York City – Industrial	$98.8	2.4%	0.8%
New York City – Multifamily	$208.8	0.6%	-0.6%
New York City – Office	$1,418.5	3.1%	0.1%
New York City – Other	$1,675.2	7.6%	-0.3%
New York City – Retail	$2,078.7	16.0%	2.6%
New York City – Self Storage	$0.0	0.0%	0.0%
Orlando – Orlando-Kissimmee, FL MSA	$138.5	1.3%	0.0%
Orlando – Hotel	$52.2	1.9%	0.0%
Orlando – Industrial	$0.0	0.0%	0.0%
Orlando – Multifamily	$0.0	0.0%	0.0%
Orlando – Office	$57.7	13.0%	0.1%
Orlando – Other	$0.0	0.0%	0.0%
Orlando – Retail	$28.5	3.2%	0.1%
Orlando – Self Storage	$0.0	0.0%	0.0%
Philadelphia – Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA	$780.9	3.7%	-0.2%
Philadelphia – Hotel	$69.4	7.7%	-3.8%
Philadelphia – Industrial	$10.4	0.3%	0.3%
Philadelphia – Multifamily	$75.2	0.8%	-0.8%
Philadelphia – Office	$221.6	5.4%	1.3%
Philadelphia – Other	$385.1	30.1%	0.5%
Philadelphia – Retail	$19.2	0.9%	0.0%
Philadelphia – Self Storage	$0.0	0.0%	0.0%
Phoenix – Phoenix-Mesa-Scottsdale, AZ MSA	$234.2	1.2%	0.2%
Phoenix – Hotel	$32.5	2.0%	-0.1%
Phoenix – Industrial	$0.0	0.0%	0.0%
Phoenix – Multifamily	$0.0	0.0%	0.0%
Phoenix – Office	$55.9	2.6%	0.7%
Phoenix – Other	$0.0	0.0%	-1.0%
Phoenix – Retail	$145.8	8.4%	1.2%
Phoenix – Self Storage	$0.0	0.0%	0.0%
Pittsburgh – Pittsburgh, PA MSA	$245.6	5.2%	4.0%
Pittsburgh – Hotel	$15.8	8.7%	0.0%
Pittsburgh – Industrial	$0.0	0.0%	0.0%
Pittsburgh – Multifamily	$0.1	0.0%	0.0%
Pittsburgh – Office	$104.6	9.6%	6.7%
Pittsburgh – Other	$117.3	33.1%	30.5%
Pittsburgh – Retail	$7.8	1.3%	1.3%
Pittsburgh – Self Storage	$0.0	0.0%	0.0%
Portland – Portland-Vancouver-Beaverton, OR-WA MSA	$583.3	8.2%	1.6%
Portland – Hotel	$348.4	38.3%	7.2%
Portland – Industrial	$0.0	0.0%	0.0%
Portland – Multifamily	$11.0	0.2%	0.3%
Portland – Office	$12.9	3.1%	0.0%
Portland – Other	$0.0	0.0%	0.0%
Portland – Retail	$211.0	42.7%	0.5%
Portland – Self Storage	$0.0	0.0%	0.0%
Raleigh – Raleigh-Cary, NC MSA	$25.9	0.7%	0.1%
Raleigh – Hotel	$15.3	7.2%	-0.2%
Raleigh – Industrial	$0.0	0.0%	0.0%
Raleigh – Multifamily	$0.0	0.0%	0.0%
Raleigh – Office	$0.0	0.0%	0.0%
Raleigh – Other	$0.0	0.0%	-4.4%
Raleigh – Retail	$10.7	4.1%	4.1%
Raleigh – Self Storage	$0.0	0.0%	0.0%
Richmond – Richmond, VA MSA	$175.0	5.2%	0.4%
Richmond – Hotel	$0.0	0.0%	0.0%
Richmond – Industrial	$0.0	0.0%	0.0%
Richmond – Multifamily	$0.0	0.0%	0.0%
Richmond – Office	$16.3	2.6%	2.6%
Richmond – Other	$12.9	8.9%	0.0%
Richmond – Retail	$145.8	32.2%	-5.9%
Richmond – Self Storage	$0.0	0.0%	0.0%
Riverside – Riverside-San Bernardino-Ontario, CA MSA	$289.9	2.8%	0.0%
Riverside – Hotel	$51.9	11.5%	-0.2%
Riverside – Industrial	$0.0	0.0%	0.0%
Riverside – Multifamily	$0.0	0.0%	0.0%
Riverside – Office	$0.0	0.0%	0.0%
Riverside – Other	$9.7	2.5%	0.0%
Riverside – Retail	$228.4	11.4%	-0.1%
Riverside – Self Storage	$0.0	0.0%	0.0%
Sacramento – Sacramento-Arden-Arcade-Roseville, CA MSA	$6.1	0.1%	-0.4%
Sacramento – Hotel	$0.0	0.0%	-2.4%
Sacramento – Industrial	$0.0	0.0%	0.0%
Sacramento – Multifamily	$0.0	0.0%	0.0%
Sacramento – Office	$6.1	0.8%	0.8%
Sacramento – Other	$0.0	0.0%	-2.9%
Sacramento – Retail	$0.0	0.0%	-1.6%
Sacramento – Self Storage	$0.0	0.0%	0.0%
Salt Lake City – Salt Lake City, UT MSA	$6.1	0.1%	0.0%
Salt Lake City – Hotel	$6.1	2.1%	-0.1%
Salt Lake City – Industrial	$0.0	0.0%	0.0%
Salt Lake City – Multifamily	$0.0	0.0%	0.0%
Salt Lake City – Office	$0.0	0.0%	0.0%
Salt Lake City – Other	$0.0	0.0%	0.0%
Salt Lake City – Retail	$0.0	0.0%	0.0%
Salt Lake City – Self Storage	$0.0	0.0%	0.0%
San Antonio – San Antonio, TX MSA	$140.7	2.2%	0.2%
San Antonio – Hotel	$17.1	6.3%	3.1%
San Antonio – Industrial	$0.0	0.0%	0.0%
San Antonio – Multifamily	$7.9	0.2%	0.2%
San Antonio – Office	$0.0	0.0%	0.0%
San Antonio – Other	$0.0	0.0%	0.0%
San Antonio – Retail	$115.8	14.2%	0.0%
San Antonio – Self Storage	$0.0	0.0%	0.0%
San Diego – San Diego-Carlsbad-San Marcos, CA MSA	$55.6	0.5%	-0.1%
San Diego – Hotel	$39.4	3.4%	1.5%
San Diego – Industrial	$0.0	0.0%	0.0%
San Diego – Multifamily	$4.2	0.1%	0.0%
San Diego – Office	$0.0	0.0%	0.0%
San Diego – Other	$9.2	1.3%	-1.6%
San Diego – Retail	$2.9	0.2%	0.0%
San Diego – Self Storage	$0.0	0.0%	0.0%
San Francisco – San Francisco-Oakland-Fremont, CA MSA	$694.9	2.7%	-0.2%
San Francisco – Hotel	$100.7	3.4%	-0.7%
San Francisco – Industrial	$0.0	0.0%	0.0%
San Francisco – Multifamily	$460.9	5.8%	-0.3%
San Francisco – Office	$32.1	0.3%	0.0%
San Francisco – Other	$53.7	2.0%	0.0%
San Francisco – Retail	$47.4	4.0%	-0.8%
San Francisco – Self Storage	$0.0	0.0%	0.0%
San Jose – San Jose-Sunnyvale-Santa Clara, CA MSA	$55.6	0.3%	0.0%
San Jose – Hotel	$32.0	0.5%	0.0%
San Jose – Industrial	$0.0	0.0%	0.0%
San Jose – Multifamily	$0.0	0.0%	0.0%
San Jose – Office	$23.6	0.3%	0.0%
San Jose – Other	$0.0	0.0%	0.0%
San Jose – Retail	$0.0	0.0%	0.0%
San Jose – Self Storage	$0.0	0.0%	0.0%
Seattle – Seattle-Tacoma-Bellevue, WA MSA	$36.1	0.2%	-0.2%
Seattle – Hotel	$36.1	2.6%	-2.6%
Seattle – Industrial	$0.0	0.0%	0.0%
Seattle – Multifamily	$0.0	0.0%	0.0%
Seattle – Office	$0.0	0.0%	0.0%
Seattle – Other	$0.0	0.0%	0.0%
Seattle – Retail	$0.0	0.0%	0.0%
Seattle – Self Storage	$0.0	0.0%	0.0%
St. Louis – St. Louis, MO-IL MSA	$215.6	5.1%	-0.2%
St. Louis – Hotel	$1.7	0.5%	-0.1%
St. Louis – Industrial	$0.0	0.0%	0.0%
St. Louis – Multifamily	$3.2	0.2%	0.0%
St. Louis – Office	$0.0	0.0%	0.0%
St. Louis – Other	$19.5	3.9%	0.0%
St. Louis – Retail	$191.2	20.6%	-0.9%
St. Louis – Self Storage	$0.0	0.0%	0.0%
Tampa – Tampa-St. Petersburg-Clearwater, FL	$120.2	1.2%	0.0%
Tampa – Hotel	$59.0	8.5%	0.1%
Tampa – Industrial	$0.0	0.0%	0.0%
Tampa – Multifamily	$0.0	0.0%	0.0%
Tampa – Office	$23.4	3.4%	-0.3%
Tampa – Other	$0.0	0.0%	0.0%
Tampa – Retail	$37.9	5.1%	-0.1%
Tampa – Self Storage	$0.0	0.0%	0.0%
Tucson – Tucson, AZ MSA	$158.9	4.7%	-0.2%
Tucson – Hotel	$0.0	0.0%	0.0%
Tucson – Industrial	$0.0	0.0%	0.0%
Tucson – Multifamily	$0.0	0.0%	0.0%
Tucson – Office	$0.0	0.0%	0.0%
Tucson – Other	$0.0	0.0%	0.0%
Tucson – Retail	$158.9	19.4%	-3.6%
Tucson – Self Storage	$0.0	0.0%	0.0%
Virginia Beach – Virginia Beach-Norfolk-Newport News, VA-NC MSA	$163.7	3.4%	0.2%
Virginia Beach – Hotel	$0.0	0.0%	0.0%
Virginia Beach – Industrial	$0.0	0.0%	0.0%
Virginia Beach – Multifamily	$0.0	0.0%	0.0%
Virginia Beach – Office	$0.0	0.0%	0.0%
Virginia Beach – Other	$0.0	0.0%	0.0%
Virginia Beach – Retail	$163.7	20.1%	-0.2%
Virginia Beach – Self Storage	$0.0	0.0%	0.0%
Washington, DC – Washington-Arlington-Alexandria, DC-VA-MD-WV MSA	$835.8	2.6%	1.1%
Washington, DC – Hotel	$36.2	3.3%	-0.2%
Washington, DC – Industrial	$0.0	0.0%	0.0%
Washington, DC – Multifamily	$228.6	1.5%	1.5%
Washington, DC – Office	$463.7	6.1%	1.8%
Washington, DC – Other	$32.9	2.2%	0.0%
Washington, DC – Retail	$74.5	2.3%	0.0%
Washington, DC – Self Storage	$0.0	0.0%	0.0%
Grand Total	$22,640.6	3.2%	0.3%

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers to CRED iQ use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Our data platform is powered by over $2.0 trillion of CMBS, CRE CLO, SBLL, Ginnie Mae, FHA/HUD, and Freddie Mac loan and property data.

December 2022 Delinquency Report

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CRED iQ

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January 2, 2023

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The CRED iQ delinquency rate for CMBS closed out year-end 2022 with a rate of 3.49% for the December 2022 reporting period. The delinquency rate marginally increased throughout Q4 2022 but was down overall compared to the start of the year. The delinquency rate (3.49%) is equal to the percentage of all delinquent specially serviced loans and delinquent non-specially serviced loans, for CRED iQ’s sample universe of $500+ billion in CMBS conduit and single asset single-borrower (SASB) loans. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that are with the special servicer (delinquent and non-delinquent), increased month-over-month to 5.16% from 4.95%. Aggregating the two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 5.33% of CMBS loans that are specially serviced, delinquent, or a combination of both. The overall distressed rate increased compared to the prior month’s distressed rate of 5.15%. These distressed rates typically track slightly higher than special servicing rates as most delinquent loans are also with the special servicer.

By property type, retail ended the year with the highest delinquency rate. The delinquency rate for retail increased 13% to 7.91%, compared to 7.00% as of November 2022. Retail started 2022 with the second-highest delinquency rate behind lodging; however, a lack of meaningful and sustained delinquency cures caused retail to be a laggard among property types for most of the year.

December’s delinquency retail rate was pushed higher in December by several maturity defaults. As one example, a $162.9 million loan secured by West County Center in Des Peres, MO defaulted on its December 1, 2022 maturity date. The collateral is a 743,945-sf portion of a regional mall owned by CBL Properties. The loan had been in special servicing since the onset of the pandemic in April 2020 but remained current in payment until its maturity default.

In addition to retail, delinquency rates for multifamily (2.61%), office (1.76%), and industrial (0.17%) also exhibited month-over-month increases during December 2022. Conversely, the delinquency rate for loans secured by lodging properties (4.63%) was lower compared to the prior month. Over the course of 2022, the delinquency rate for lodging has declined by more than 50% as part of a significant sector recovery from pandemic-related distress.

Switching focus to special servicing rates by property type, loans secured by office properties have exhibited the largest month-over-month increase among all property types. The office special servicing rate for December 2022 was 3.77%, compared to 3.31% as of the prior month. One of the largest office loans to transfer to special servicing was the $243.6 million Republic Plaza loan, which is secured by a 1.3 million-sf tower located in the CBD of Denver, CO. The loan defaulted on its December 1, 2022 maturity date.

Maturity defaults also stressed the special servicing rate for retail. The retail special servicing rate increased to 11.04% as of December 2022. One of the larger retail maturity defaults was a $75.4 million mortgage secured by Avenue Forsyth, a 523,535-sf retail center located in Cumming, GA. The special servicing rates for lodging, multifamily, and industrial commercial real estate loans declined compared to the prior month.

CRED iQ’s CMBS distressed rate (DQ + SS%) by property type accounts for loans that qualify for either delinquent or special servicing subsets. This month, the overall distressed rate for CMBS increased to 5.33%, which followed a relatively sharp increase in the overall delinquency rate. The increase in the overall CMBS distressed rate was primarily caused by loans entering maturity default such as the aforementioned West County Center and Republic Plaza loans. For additional information about these two loans, click View Details below:

	[View Details]	[View Details]
Loan	Republic Plaza	West County Center
Balance	$243,621,128	$161,887,620
Special Servicer Transfer Date	11/22/2022	4/6/2020

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $2.0 trillion of commercial real estate.

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CRED iQ’s Most-Read Posts of 2022

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CRED iQ

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December 31, 2022

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As we prepare to turn the page to a new year, we decided to take one final look at 2022.

The CRED iQ team made the most out of 2022 for our clients by providing market constituents with commercial real estate analytics, loan and property data as well as fresh takes on commercial real estate trends and new cycles.

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Here are the stories that attracted the most attention in 2022:

#1   2023 CRE Maturity Outlook: The Year Ahead – Dec ’22:  Read here
#2    January 2022 Delinquency Report – Jan ’22:  Read here
#3    Top 20 Markets – Multifamily Revenue per Unit – Nov ’22:  Read here
#4    CMBS and CRE: Implications of Kohl’s Takeover – March’22:  Read here
#5    Aronson Joins CRED iQ as Chief Commercial Officer – Dec ’22:  Read here
#6    Starwood Mall Portfolio – March’22:  Read here
#7    Bed Bath & Beyond Closures – Jan ’22:  Read here
#8    Commercial Real Estate Auctions – March 2022 – March ’22:  Read here
#9    Lease Expirations – April ’22:  Read here
#10  Rising Interest Rates for CMBS Loans –June ’22:  Read here

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. Subscribers use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities.

The platform also offers a highly efficient valuation engine which can be leveraged across all property types and geographies. Our data platform is powered by over $2.0 trillion in transactions and data covering CRE, CMBS, CRE CLO, Single Asset Single Borrower (SASB), and all of GSE / Agency.

If you would like to learn more about CRED iQ’s products and services, please contact team@cred-iq.com or (215) 220-6776.

Aronson Joins CRED iQ as Chief Commercial Officer

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CRED iQ

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December 14, 2022

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Welcome Chris Aronson CRED iQ — Chris Aronson Joins CRED iQ as the new Chief Commercial Officer

Former EDR and Compstak Executive joins CRE data firm CRED iQ

“CRED iQ is the platform that the CRE world has been begging for—I have never witnessed this level of client enthusiasm,” said Aronson. “It is an honor to join this exceptional team as we enter an exciting new chapter of growth and innovation.”
Chris Aronson

NEW YORK and PHILADELPHIA: CRED iQ, the fastest growing provider of commercial real estate (CRE) data, analytics and valuation is pleased to announce that Chris Aronson has joined the company as Chief Commercial Officer.

Chris brings deep leadership experience serving CRE investors, owners, and financial institutions. As CEO of EDR, he oversaw the delivery of CRE loan underwriting workflow/risk management software and data to over one thousand lenders globally. He then led the sale of the business for $205 Million. Chris also served as CEO of eDiligence, as well as Chief Commercial Officer at CompStak, both CRE data and analytics firms. Throughout his career, he has delivered strong growth and liquidity to investors, colleagues and stakeholders, including three successful exits.

“CRED iQ is the platform that the CRE world has been begging for—I have never witnessed this level of client enthusiasm,” said Aronson. “It is an honor to join this exceptional team as we enter an exciting new chapter of growth and innovation.”

“Chris is a world-class executive with a proven track record of launching & growing several data & tech businesses throughout his career, and I couldn’t be more thrilled to be working with him,” said Michael Haas, CRED iQ’s Co-Founder & CEO. “Chris’s leadership and operational experience will be invaluable as we launch new products next year and continue servicing our growing enterprise customer base.”

CRED iQ provides actionable data to commercial real estate lenders, brokers, and investors. CRED iQ’s customers use the platform to identify valuable leads for leasing, lending, refinancing, distressed debt, and acquisition opportunities. Additionally, CRED iQ’s proprietary technology & valuation platform allows for the seamless integration of third-party data vendors to streamline workflows and improve business decisions.

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About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform providing actionable intelligence to CRE and capital markets investors. The data platform is powered by over $2.0 trillion in transactions and data covering CRE, CMBS, CRE CLO, SBLL, and all of the loans securitized within the GSE/Agency universe.