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Top 20 Markets – Multifamily Revenue per Unit

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CRED iQ
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CRED iQ examined revenue trends for over 10,000 multifamily properties across the Agency and CMBS securitization universe covering over $800 billion of securitized debt. Data was derived from full-year property-level financial statements for 2021. Partial-year financial statements from 2022 were also considered when available and appropriate. However, annualized financial statements from partial-year periods may have included abnormalities from the timing of revenue recognition in certain cases and were subsequently excluded. Property-level financial statements for securitized mortgages are generally reported on a lag basis and can take several months to be reported after borrowers’ initial reporting and subsequent servicer adjustments.

In our observations, revenue per occupied unit included gross earnings for a multifamily property. Total revenue per unit comprised base rents as well as ancillary income, which included supplemental tenant services such as parking, laundry, and common area amenities.

CRED iQ aggregated year-end 2021 financial data by MSA for the 100 largest primary and secondary multifamily markets. Revenue figures were then analyzed on a per unit basis and adjusted for property-level occupancy performance to determine the highest grossing multifamily markets in the country. As a baseline, average revenue per occupied unit across all primary and secondary markets was approximately $1,568. Isolating the Top 20 markets, the average revenue per occupied unit was $1,918 – approximately 22% higher than the average for all markets. MSAs located in the state of California accounted for seven (35%) of the Top 20 markets with the highest revenue per occupied unit. Among the top MSAs in California were San Jose and San Francisco, which both ranking in the five highest grossing multifamily markets.

The Bridgeport-Stamford-Norwalk, CT MSA had the highest average revenue per occupied unit in 2021 with $2,648. Operating leverage averaged about 45% with average operating expenses per unit of $1,203. The Bridgeport market barely edged out the New York-Northern New Jersey-Long Island MSA, which had average revenue per occupied unit of $2,644 – less than 1% lower than Bridgeport. The average operating leverage for the New York MSA was approximately 44%, which was in line with the Bridgeport MSA. New York and Bridgeport were two of six submarkets with average revenue per occupied unit that was greater than $2,000.

Accounting for operating expenses on a per unit basis, the Top 20 highest grossing markets had an average operating expense ratio of 44%. The Denver-Aurora, CO MSA has the highest margins with an average operating expense ratio of 37% while multifamily properties in the Buffalo-Niagara Falls, NY MSA performed with the highest operating leverage, equal to 50%. When accounting for lower operating leverage, markets can be viewed more favorably based on Net Operating Income (NOI) potential. Comparable expense per unit figures can vary widely across markets in a number of categories, including real estate taxes, insurance premiums, or utility costs.

Shifting focus to the opposite side of the scale, some notable high-inventory markets with relatively lower revenue per occupied unit metrics included Kansas City ($995), Detroit ($1,081), San Antonio ($1,143), Houston ($1,146), and Columbus, OH ($1,161).

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.

Webinar: Maturing Loans in 2023

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CRED iQ
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0

Please join CRED iQ for a live webinar on December 1, 2022 at 2:00 PM Eastern for a lively discussion about commercial real estate loans with maturity dates in 2023. Mike Haas, Co-Founder, and Shane Beeson, Head of Sales, will present strategies for identifying CRE opportunities in a rising rate environment.

  • Building a list of Maturing Loans
  • How Brokers, Lenders and Investors can Find Opportunities
  • High Interest Rates & Maturity Risk
  • CRE Valuations in Today’s Market
  • Contacting Borrowers/Owners & Lenders with CRED iQ

Register for this webinar using the link below:

Register Here!

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.

CMBS – October 2022 Loan Dispositions and Payoffs

By
CRED iQ
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0

CMBS conduit transactions incurred approximately $147 million in realized losses during October 2022 via the workout of distressed assets. CRED iQ identified 15 workouts classified as dispositions, liquidations, or discounted payoffs in October 2022. Of the 15 workouts, only two of the assets were resolved without a loss. Of the 13 workouts resulting in losses, severities for the month of September ranged from less than 1% to 100%, based on outstanding balances at disposition. Aggregate realized losses in October 2022 were more than twice the total of losses in September despite the same number of workouts. On a monthly basis, realized losses for CMBS conduit and SBLL transactions averaged approximately $138.5 million year-to-date.

By property type, workouts were concentrated in retail, accounting for eight of the 15 distressed resolutions. Lodging properties accounted for the next highest number of distressed workouts with four. Distressed workouts for retail properties had the highest total of aggregate realized losses (over $95 million) and the highest average loss severity (50%) across all property types. The largest individual realized loss from CRED iQ’s observations was from a $39.7 mortgage secured by Pierre Bossier Mall, a 265,347-sf portion of a regional mall located outside of Shreveport, LA. The loan transferred to special servicing in June 2020 and ultimately liquidated with realized losses to its CMBS trust of $27.9 million, equal to a 70% loss severity based on the loan’s outstanding balance prior to disposition.

The largest loss by severity was associated with Johnstown Galleria, a 700,000-sf regional mall located in western Pennsylvania. The retail property became REO in November 2021 and had $13.6 million in outstanding debt prior to disposition. The debt was formerly secured by a leased fee interest in a 46-acre land parcel, which excluded the improvements of the mall at the time — the mall operated with a ground lease that was terminated after payment default. The REO asset, inclusive of the land and the improvements, was liquidated with a 100% loss severity.

The largest workout by outstanding debt amount was the liquidation of a leasehold interest in Hilton Times Square, a 460-key full-service hotel located in Manhattan, NY. The REO property was reportedly sold for $85 million to a group that included Apollo Global Management and hotel operations reopened this month for the first time since a pandemic-induced closure in early 2020. The asset had outstanding debt of $75.6 prior to its liquidation and was resolved with a 30% loss severity, accounting for liquidation expenses in excess of $26 million.

Excluding defeased loans, there was approximately $7.3 billion in securitized debt among CMBS conduit, SBLL, and Freddie Mac securitizations that was paid off or liquidated in October, which was approximately a 5% increase compared to $7 billion in September 2022. In October, 4.7% of the loan resolutions were categorized as dispositions, liquidations, or discounted payoffs. The percentage of distressed workouts was 3.6% in the prior month. Approximately 30% of the loans were paid off with prepayment penalties, which was a significant decline compared to the prior month.

By property type, multifamily had the highest total of outstanding debt pay off in September with 49% of the total by balance. Office had the next highest outstanding debt pay off with 20% of the total. Among the largest individual payoffs was a $700 million mortgage secured by Blackstone’s Center for Life Science, a 704,159-sf life sciences building in Boston, MA that features office and lab space. The loan was refinanced in October with a $750 million mortgage.

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.

CRED-iQ-CMBS-October-2022-Dispositions-and-Payoffs-1Download

Market Delinquency Tracker – November 2022

By
CRED iQ
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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 October 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, there were 27 markets that exhibited month-over-month decreases in the percentage of distressed CRE loans within the CMBS universe. Total markets with month-over-month improvements in distressed rates outnumbered markets with distressed rate increases. Notable markets with improvements in distress included Portland, OR (-1.65%), Kansas City, MO (-1.23%), and Cleveland (-1.05%). The Richmond, VA market (+2.93%) exhibited the largest percentage increase in distressed commercial real estate loans during October 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. In the case of higher CRE distress for in the Richmond market relative to last month, the adverse developments can be traced to the retail market. In particular, a $92.4 million mortgage secured by Chesterfield Towne Center transferred to special servicing in September 2022 before it defaulted at maturity in October 2022. Collateral for the loan includes over 1 million sf of retail space between a regional mall and adjacent freestanding retail suites. The regional mall features traditional anchor boxes such as Macy’s, JCPenney, and At Home, as well as a vacant former Sears. A maturity extension is a viable option for the loan, but conveyance of the property remains within the range of outcomes.

The retail property type was associated with four of the 10 sharpest percentage increases in distressed rates across market-sectors during October 2022. In addition to Richmond, retail markets for Salt Lake City (+6.0%), Los Angeles (+3.9%), and New York City (3.4%) had percentage increases in distressed rates this month.

Market-sectors with month-over-month improvements in distressed rates varied by property type. Hotel, Retail, Industrial, Mixed-Use, and Other/Specialty Use were represented across Top 10 market-sector declines in distressed rates. The Virginia Beach industrial market (-8.0%) exhibited the highest percentage improvement compared to September 2022. A distressed workout of the Commonwealth Commerce Center, a 703,170-sf industrial complex in Suffolk, VA. The REO property was liquidated and resolved $21.2 million in outstanding debt.

The Minneapolis MSA has the highest overall distressed rate at 20.6%, which was in line with the previous month. Birmingham (9.6%), Cleveland (8.9%), Milwaukee (8.8%), and Hartford (8.3%) comprise the remaining markets with the highest rates of distress. Milwaukee was a new addition to the Top 5 distressed markets this month, displacing Portland. The Jacksonville market (0.1%) had the lowest percentage of distress among the Top 50 MSAs for the third consecutive month.

For the full CRED DQ Report, download here:

The-CRED-DQ-Market-Delinquency-Tracker-November-2022Download
 MSA – Property Type  DQ/SS
(millions) 		DS/SS
(%)		Monthly
Change
Allentown-Bethlehem-Easton, PA-NJ MSA$78.32.6%0.1%
Allentown – Hotel$0.82.1%2.1%
Allentown – Industrial$0.00.0%0.0%
Allentown – Multifamily$0.00.0%0.0%
Allentown – Office$58.519.1%0.0%
Allentown – Other$0.00.0%0.0%
Allentown – Retail$19.05.1%0.1%
Allentown – Self Storage$0.00.0%0.0%
Atlanta – Atlanta-Sandy Springs-Marietta, GA MSA$411.71.5%-0.4%
Atlanta – Hotel$131.95.4%-1.5%
Atlanta – Industrial$0.00.0%0.0%
Atlanta – Multifamily$0.00.0%0.0%
Atlanta – Office$69.43.4%0.1%
Atlanta – Other$0.00.0%0.0%
Atlanta – Retail$210.411.7%-4.0%
Atlanta – Self Storage$0.00.0%0.0%
Austin – Austin-Round Rock, TX MSA$132.81.5%-0.2%
Austin – Hotel$33.44.5%-1.9%
Austin – Industrial$0.00.0%0.0%
Austin – Multifamily$40.10.7%0.0%
Austin – Office$0.00.0%0.0%
Austin – Other$10.02.7%0.1%
Austin – Retail$49.36.6%0.2%
Austin – Self Storage$0.00.0%0.0%
Baltimore – Baltimore-Towson, MD MSA$361.43.6%-0.1%
Baltimore – Hotel$44.010.0%-0.7%
Baltimore – Industrial$0.00.0%0.0%
Baltimore – Multifamily$3.80.1%0.0%
Baltimore – Office$40.92.3%-0.9%
Baltimore – Other$21.99.0%4.5%
Baltimore – Retail$250.822.7%0.0%
Baltimore – Self Storage$0.00.0%0.0%
Birmingham – Birmingham-Hoover, AL MSA$282.49.7%0.0%
Birmingham – Hotel$0.00.0%0.0%
Birmingham – Industrial$0.00.0%0.0%
Birmingham – Multifamily$2.10.2%0.0%
Birmingham – Office$95.019.1%0.3%
Birmingham – Other$0.00.0%-4.7%
Birmingham – Retail$184.427.1%0.8%
Birmingham – Self Storage$0.92.6%2.6%
Boston – Boston-Cambridge-Quincy, MA-NH MSA$131.20.7%0.0%
Boston – Hotel$26.71.6%0.0%
Boston – Industrial$0.00.0%0.0%
Boston – Multifamily$0.00.0%0.0%
Boston – Office$14.50.2%0.0%
Boston – Other$0.00.0%0.0%
Boston – Retail$90.08.2%-0.1%
Boston – Self Storage$0.00.0%0.0%
Bridgeport – Bridgeport-Stamford-Norwalk, CT MSA$145.33.8%-0.9%
Bridgeport – Hotel$1.01.2%-32.9%
Bridgeport – Industrial$0.00.0%0.0%
Bridgeport – Multifamily$0.00.0%0.0%
Bridgeport – Office$134.512.9%0.1%
Bridgeport – Other$9.82.6%0.1%
Bridgeport – Retail$0.00.0%0.0%
Bridgeport – Self Storage$0.00.0%0.0%
Charlotte – Charlotte-Gastonia-Concord, NC-SC MSA$248.03.4%0.0%
Charlotte – Hotel$60.57.0%-0.7%
Charlotte – Industrial$0.00.0%0.0%
Charlotte – Multifamily$0.00.0%0.0%
Charlotte – Office$0.00.0%0.0%
Charlotte – Other$100.540.3%0.3%
Charlotte – Retail$87.09.7%1.6%
Charlotte – Self Storage$0.00.0%0.0%
Chicago – Chicago-Naperville-Joliet, IL-IN-WI MSA$2,247.47.7%-0.2%
Chicago – Hotel$814.931.6%-1.3%
Chicago – Industrial$0.00.0%0.0%
Chicago – Multifamily$58.90.6%0.0%
Chicago – Office$898.011.5%0.1%
Chicago – Other$208.88.2%-0.1%
Chicago – Retail$266.99.2%-0.1%
Chicago – Self Storage$0.00.0%0.0%
Cincinnati – Cincinnati-Middletown, OH-KY-IN MSA$108.62.9%-0.3%
Cincinnati – Hotel$87.429.5%0.0%
Cincinnati – Industrial$0.00.0%0.0%
Cincinnati – Multifamily$2.30.1%0.0%
Cincinnati – Office$0.00.0%0.0%
Cincinnati – Other$6.82.6%0.0%
Cincinnati – Retail$12.12.4%-1.7%
Cincinnati – Self Storage$0.00.0%0.0%
Cleveland – Cleveland-Elyria-Mentor, OH MSA$351.18.8%-1.0%
Cleveland – Hotel$85.147.4%0.0%
Cleveland – Industrial$0.00.0%0.0%
Cleveland – Multifamily$5.60.3%0.0%
Cleveland – Office$83.010.1%-4.4%
Cleveland – Other$168.842.7%-0.3%
Cleveland – Retail$7.71.1%0.0%
Cleveland – Self Storage$0.81.7%1.7%
Columbus, OH – Columbus, OH MSA$197.72.9%-0.4%
Columbus, OH – Hotel$37.812.4%-0.9%
Columbus, OH – Industrial$11.72.8%-0.2%
Columbus, OH – Multifamily$9.40.2%-0.3%
Columbus, OH – Office$30.14.8%0.0%
Columbus, OH – Other$0.00.0%0.0%
Columbus, OH – Retail$108.615.1%-0.6%
Columbus, OH – Self Storage$0.00.0%0.0%
Dallas – Dallas-Fort Worth-Arlington, TX MSA$241.20.7%-0.1%
Dallas – Hotel$78.02.3%-0.3%
Dallas – Industrial$1.70.1%0.0%
Dallas – Multifamily$7.10.0%-0.2%
Dallas – Office$83.42.8%0.0%
Dallas – Other$4.90.2%0.0%
Dallas – Retail$66.13.4%0.8%
Dallas – Self Storage$0.00.0%0.0%
Denver – Denver-Aurora, CO MSA$283.01.8%-0.2%
Denver – Hotel$23.83.0%0.3%
Denver – Industrial$0.00.0%0.0%
Denver – Multifamily$0.00.0%-0.1%
Denver – Office$147.17.3%-1.6%
Denver – Other$94.310.0%0.2%
Denver – Retail$17.81.4%0.1%
Denver – Self Storage$0.00.0%0.0%
Detroit – Detroit-Warren-Livonia, MI MSA$249.22.5%-0.4%
Detroit – Hotel$84.212.0%-3.5%
Detroit – Industrial$0.00.0%0.0%
Detroit – Multifamily$0.00.0%0.0%
Detroit – Office$14.60.7%0.0%
Detroit – Other$0.00.0%-2.7%
Detroit – Retail$150.411.3%0.8%
Detroit – Self Storage$0.00.0%0.0%
Hartford – Hartford-West Hartford-East Hartford, CT MSA$202.18.3%-0.3%
Hartford – Hotel$19.721.5%2.7%
Hartford – Industrial$0.00.0%0.0%
Hartford – Multifamily$0.00.0%0.0%
Hartford – Office$25.310.2%0.7%
Hartford – Other$0.00.0%0.0%
Hartford – Retail$157.246.7%-7.9%
Hartford – Self Storage$0.00.0%0.0%
Houston – Houston-Sugar Land-Baytown, TX MSA$1,096.44.6%0.3%
Houston – Hotel$383.340.0%-1.0%
Houston – Industrial$0.00.0%0.0%
Houston – Multifamily$26.80.2%0.0%
Houston – Office$502.715.9%1.9%
Houston – Other$74.811.2%4.7%
Houston – Retail$108.62.8%0.0%
Houston – Self Storage$0.00.0%0.0%
Indianapolis – Indianapolis-Carmel, IN MSA$209.53.4%-0.6%
Indianapolis – Hotel$96.915.1%-1.8%
Indianapolis – Industrial$0.00.0%0.0%
Indianapolis – Multifamily$40.41.4%0.0%
Indianapolis – Office$61.710.4%0.0%
Indianapolis – Other$4.91.9%0.0%
Indianapolis – Retail$5.62.0%0.1%
Indianapolis – Self Storage$0.00.0%0.0%
Jacksonville – Jacksonville, FL MSA$5.00.1%0.0%
Jacksonville – Hotel$0.00.0%0.0%
Jacksonville – Industrial$0.00.0%0.0%
Jacksonville – Multifamily$3.10.1%0.0%
Jacksonville – Office$0.00.0%0.0%
Jacksonville – Other$0.00.0%0.0%
Jacksonville – Retail$1.90.5%0.0%
Jacksonville – Self Storage$0.00.0%0.0%
Kansas City – Kansas City, MO-KS MSA$51.90.9%-1.2%
Kansas City – Hotel$29.713.2%-14.3%
Kansas City – Industrial$0.00.0%0.0%
Kansas City – Multifamily$0.00.0%-0.1%
Kansas City – Office$0.00.0%0.0%
Kansas City – Other$21.110.5%0.1%
Kansas City – Retail$1.10.2%-3.6%
Kansas City – Self Storage$0.00.0%0.0%
Las Vegas – Las Vegas-Paradise, NV MSA$229.31.1%-0.2%
Las Vegas – Hotel$0.00.0%0.0%
Las Vegas – Industrial$0.00.0%0.0%
Las Vegas – Multifamily$0.00.0%-0.7%
Las Vegas – Office$0.00.0%0.0%
Las Vegas – Other$0.00.0%0.0%
Las Vegas – Retail$229.35.7%0.6%
Las Vegas – Self Storage$0.00.0%0.0%
Los Angeles – Los Angeles-Long Beach-Santa Ana, CA MSA$868.11.7%0.6%
Los Angeles – Hotel$99.91.5%-0.3%
Los Angeles – Industrial$0.00.0%0.0%
Los Angeles – Multifamily$50.80.2%0.2%
Los Angeles – Office$111.41.1%0.5%
Los Angeles – Other$85.22.9%0.2%
Los Angeles – Retail$520.78.9%3.9%
Los Angeles – Self Storage$0.00.0%0.0%
Louisville – Louisville/Jefferson County, KY-IN MSA$71.72.6%0.0%
Louisville – Hotel$0.00.0%0.0%
Louisville – Industrial$0.00.0%0.0%
Louisville – Multifamily$0.00.0%0.0%
Louisville – Office$0.00.0%0.0%
Louisville – Other$0.00.0%0.0%
Louisville – Retail$71.714.8%-0.8%
Louisville – Self Storage$0.00.0%0.0%
Memphis – Memphis, TN-AR-MS MSA$86.23.6%0.1%
Memphis – Hotel$13.05.8%-0.2%
Memphis – Industrial$0.00.0%0.0%
Memphis – Multifamily$6.90.6%0.0%
Memphis – Office$0.00.0%0.0%
Memphis – Other$5.417.0%-0.2%
Memphis – Retail$60.917.2%0.8%
Memphis – Self Storage$0.00.0%0.0%
Miami – Miami-Fort Lauderdale-Pompano Beach, FL MSA$342.41.4%0.3%
Miami – Hotel$11.00.2%0.0%
Miami – Industrial$0.00.0%0.0%
Miami – Multifamily$0.00.0%0.0%
Miami – Office$4.00.2%0.0%
Miami – Other$0.00.0%-0.6%
Miami – Retail$327.46.1%1.6%
Miami – Self Storage$0.00.0%0.0%
Milwaukee – Milwaukee-Waukesha-West Allis, WI MSA$208.68.8%0.5%
Milwaukee – Hotel$16.710.7%6.7%
Milwaukee – Industrial$0.00.0%0.0%
Milwaukee – Multifamily$0.00.0%0.0%
Milwaukee – Office$82.916.7%-0.2%
Milwaukee – Other$0.60.6%0.0%
Milwaukee – Retail$108.427.1%1.8%
Milwaukee – Self Storage$0.00.0%0.0%
Minneapolis – Minneapolis-St. Paul-Bloomington, MN-WI MSA$1,739.320.9%0.3%
Minneapolis – Hotel$243.043.4%3.4%
Minneapolis – Industrial$0.00.0%0.0%
Minneapolis – Multifamily$0.00.0%0.0%
Minneapolis – Office$92.14.4%0.0%
Minneapolis – Other$4.11.1%0.1%
Minneapolis – Retail$1,400.077.8%0.4%
Minneapolis – Self Storage$0.00.0%0.0%
Nashville – Nashville-Davidson-Murfreesboro-Franklin, TN MSA$52.60.9%-0.3%
Nashville – Hotel$43.23.0%-1.5%
Nashville – Industrial$0.00.0%0.0%
Nashville – Multifamily$0.00.0%0.0%
Nashville – Office$0.00.0%0.0%
Nashville – Other$0.00.0%0.0%
Nashville – Retail$9.41.4%0.1%
Nashville – Self Storage$0.00.0%0.0%
New Orleans – New Orleans-Metairie-Kenner, LA MSA$124.13.7%0.0%
New Orleans – Hotel$60.05.9%0.5%
New Orleans – Industrial$0.00.0%0.0%
New Orleans – Multifamily$0.00.0%0.0%
New Orleans – Office$27.25.0%0.0%
New Orleans – Other$14.89.5%-0.5%
New Orleans – Retail$22.13.5%-0.2%
New Orleans – Self Storage$0.00.0%0.0%
New York City – New York-Northern New Jersey-Long Island, NY-NJ-PA MSA$5,985.34.7%0.6%
New York City – Hotel$1,074.727.0%3.0%
New York City – Industrial$64.61.6%0.0%
New York City – Multifamily$182.00.5%0.0%
New York City – Office$1,404.83.1%0.0%
New York City – Other$1,637.67.5%1.4%
New York City – Retail$1,621.713.3%3.4%
New York City – Self Storage$0.00.0%0.0%
Orlando – Orlando-Kissimmee, FL MSA$159.21.6%-0.2%
Orlando – Hotel$52.31.9%-1.3%
Orlando – Industrial$0.00.0%0.0%
Orlando – Multifamily$0.00.0%0.0%
Orlando – Office$57.812.7%2.1%
Orlando – Other$0.00.0%0.0%
Orlando – Retail$49.15.2%0.1%
Orlando – Self Storage$0.00.0%0.0%
Philadelphia – Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA$730.33.7%0.4%
Philadelphia – Hotel$102.111.1%-0.9%
Philadelphia – Industrial$0.00.0%0.0%
Philadelphia – Multifamily$49.20.6%0.1%
Philadelphia – Office$179.95.0%1.8%
Philadelphia – Other$378.430.2%0.0%
Philadelphia – Retail$20.81.0%0.1%
Philadelphia – Self Storage$0.00.0%0.0%
Phoenix – Phoenix-Mesa-Scottsdale, AZ MSA$195.01.0%-0.4%
Phoenix – Hotel$23.91.6%0.0%
Phoenix – Industrial$0.00.0%0.0%
Phoenix – Multifamily$0.00.0%-0.5%
Phoenix – Office$40.91.8%0.0%
Phoenix – Other$8.61.0%-0.3%
Phoenix – Retail$121.67.4%-0.9%
Phoenix – Self Storage$0.00.0%0.0%
Pittsburgh – Pittsburgh, PA MSA$54.21.2%-0.3%
Pittsburgh – Hotel$15.88.7%0.0%
Pittsburgh – Industrial$0.00.0%0.0%
Pittsburgh – Multifamily$0.00.0%0.0%
Pittsburgh – Office$30.52.9%-0.4%
Pittsburgh – Other$7.92.3%-2.3%
Pittsburgh – Retail$0.00.0%0.0%
Pittsburgh – Self Storage$0.00.0%0.0%
Portland – Portland-Vancouver-Beaverton, OR-WA MSA$468.96.8%-1.6%
Portland – Hotel$240.030.5%-8.9%
Portland – Industrial$0.00.0%0.0%
Portland – Multifamily$0.00.0%0.0%
Portland – Office$12.93.3%0.3%
Portland – Other$0.00.0%0.0%
Portland – Retail$216.043.9%0.8%
Portland – Self Storage$0.00.0%0.0%
Raleigh – Raleigh-Cary, NC MSA$21.90.6%0.0%
Raleigh – Hotel$15.37.3%-0.1%
Raleigh – Industrial$0.00.0%0.0%
Raleigh – Multifamily$0.00.0%0.0%
Raleigh – Office$0.00.0%0.0%
Raleigh – Other$6.74.4%-0.2%
Raleigh – Retail$0.00.0%0.0%
Raleigh – Self Storage$0.00.0%0.0%
Richmond – Richmond, VA MSA$159.65.0%2.9%
Richmond – Hotel$0.00.0%0.0%
Richmond – Industrial$0.00.0%0.0%
Richmond – Multifamily$0.00.0%0.0%
Richmond – Office$0.00.0%0.0%
Richmond – Other$12.98.9%0.0%
Richmond – Retail$146.737.4%25.5%
Richmond – Self Storage$0.00.0%0.0%
Riverside – Riverside-San Bernardino-Ontario, CA MSA$277.32.8%0.0%
Riverside – Hotel$39.28.5%-2.0%
Riverside – Industrial$0.00.0%0.0%
Riverside – Multifamily$0.00.0%0.0%
Riverside – Office$0.00.0%0.0%
Riverside – Other$9.72.6%2.6%
Riverside – Retail$228.412.5%1.2%
Riverside – Self Storage$0.00.0%0.0%
Sacramento – Sacramento-Arden-Arcade-Roseville, CA MSA$29.10.5%0.2%
Sacramento – Hotel$9.82.8%1.4%
Sacramento – Industrial$0.00.0%0.0%
Sacramento – Multifamily$0.00.0%0.0%
Sacramento – Office$0.00.0%0.0%
Sacramento – Other$11.02.9%0.0%
Sacramento – Retail$8.31.5%1.5%
Sacramento – Self Storage$0.00.0%0.0%
Salt Lake City – Salt Lake City, UT MSA$42.71.0%0.5%
Salt Lake City – Hotel$6.12.2%-5.2%
Salt Lake City – Industrial$0.00.0%0.0%
Salt Lake City – Multifamily$0.00.0%0.0%
Salt Lake City – Office$0.00.0%0.0%
Salt Lake City – Other$0.00.0%0.0%
Salt Lake City – Retail$36.56.0%6.0%
Salt Lake City – Self Storage$0.00.0%0.0%
San Antonio – San Antonio, TX MSA$133.42.0%-0.3%
San Antonio – Hotel$17.13.2%-3.4%
San Antonio – Industrial$0.00.0%0.0%
San Antonio – Multifamily$0.00.0%-0.2%
San Antonio – Office$0.00.0%0.0%
San Antonio – Other$0.00.0%0.0%
San Antonio – Retail$116.314.2%-6.0%
San Antonio – Self Storage$0.00.0%0.0%
San Diego – San Diego-Carlsbad-San Marcos, CA MSA$55.70.5%0.0%
San Diego – Hotel$39.42.1%0.1%
San Diego – Industrial$0.00.0%0.0%
San Diego – Multifamily$4.20.1%0.0%
San Diego – Office$0.00.0%0.0%
San Diego – Other$9.21.3%0.0%
San Diego – Retail$2.90.3%0.0%
San Diego – Self Storage$0.00.0%0.0%
San Francisco – San Francisco-Oakland-Fremont, CA MSA$245.31.0%0.2%
San Francisco – Hotel$109.04.2%-0.3%
San Francisco – Industrial$0.00.0%0.0%
San Francisco – Multifamily$18.10.2%0.2%
San Francisco – Office$32.20.3%0.3%
San Francisco – Other$38.61.4%0.0%
San Francisco – Retail$47.54.3%-0.2%
San Francisco – Self Storage$0.00.0%0.0%
San Jose – San Jose-Sunnyvale-Santa Clara, CA MSA$23.80.1%0.0%
San Jose – Hotel$0.00.0%-0.5%
San Jose – Industrial$0.00.0%0.0%
San Jose – Multifamily$0.00.0%0.0%
San Jose – Office$23.80.3%0.3%
San Jose – Other$0.00.0%0.0%
San Jose – Retail$0.00.0%0.0%
San Jose – Self Storage$0.00.0%0.0%
Seattle – Seattle-Tacoma-Bellevue, WA MSA$73.40.3%0.0%
Seattle – Hotel$73.45.2%-0.1%
Seattle – Industrial$0.00.0%0.0%
Seattle – Multifamily$0.00.0%0.0%
Seattle – Office$0.00.0%0.0%
Seattle – Other$0.00.0%0.0%
Seattle – Retail$0.00.0%0.0%
Seattle – Self Storage$0.00.0%0.0%
St. Louis – St. Louis, MO-IL MSA$216.55.4%0.4%
St. Louis – Hotel$1.70.7%0.1%
St. Louis – Industrial$0.00.0%0.0%
St. Louis – Multifamily$3.20.2%0.2%
St. Louis – Office$0.00.0%0.0%
St. Louis – Other$19.64.0%0.0%
St. Louis – Retail$192.021.7%2.3%
St. Louis – Self Storage$0.00.0%0.0%
Tampa – Tampa-St. Petersburg-Clearwater, FL$129.31.4%-0.1%
Tampa – Hotel$54.97.7%-0.9%
Tampa – Industrial$0.00.0%0.0%
Tampa – Multifamily$0.00.0%0.0%
Tampa – Office$23.43.7%0.2%
Tampa – Other$0.00.0%0.0%
Tampa – Retail$51.07.1%0.2%
Tampa – Self Storage$0.00.0%0.0%
Tucson – Tucson, AZ MSA$158.94.9%0.1%
Tucson – Hotel$0.00.0%0.0%
Tucson – Industrial$0.00.0%0.0%
Tucson – Multifamily$0.00.0%0.0%
Tucson – Office$0.00.0%0.0%
Tucson – Other$0.00.0%0.0%
Tucson – Retail$158.922.7%2.8%
Tucson – Self Storage$0.00.0%0.0%
Virginia Beach – Virginia Beach-Norfolk-Newport News, VA-NC MSA$155.43.3%-0.7%
Virginia Beach – Hotel$0.00.0%0.0%
Virginia Beach – Industrial$0.00.0%-8.0%
Virginia Beach – Multifamily$0.00.0%0.0%
Virginia Beach – Office$0.00.0%0.0%
Virginia Beach – Other$0.00.0%0.0%
Virginia Beach – Retail$155.420.4%-2.5%
Virginia Beach – Self Storage$0.00.0%0.0%
Washington, DC – Washington-Arlington-Alexandria, DC-VA-MD-WV MSA$534.91.7%-0.1%
Washington, DC – Hotel$49.94.5%0.1%
Washington, DC – Industrial$0.00.0%0.0%
Washington, DC – Multifamily$0.00.0%0.0%
Washington, DC – Office$377.55.0%0.1%
Washington, DC – Other$32.92.3%0.2%
Washington, DC – Retail$74.72.3%0.1%
Washington, DC – Self Storage$0.00.0%0.0%
Grand Total$20,606.73.0%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.

November 2022 Delinquency Report

By
CRED iQ
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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 increased during the October 2022 reporting period, which was the second month-over-month increase over the past two years. This month, the delinquency rate, 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 was 3.28%, which was 28 bps higher than last month’s delinquency rate of 3.00%. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that are with the special servicer (delinquent and non-delinquent), declined slightly month-over-month to 4.73% from 4.79%. Aggregating the two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 5.14% 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 5.02%. These distressed rates typically track slightly higher than special servicing rates as most delinquent loans are also with the special servicer.

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

By property type, retail was the driver behind the overall increase in delinquency. The delinquency rate for retail increased 17% from 6.01% as of September 2022 to 7.06% as of October. This is the third consecutive month that the retail delinquency rate has increased. The last reporting period when retail delinquency was higher than 7% was six months ago in April 2022 when the rate was 7.37%. The retail sector has had the highest delinquency rate among all property types since May 2022.

One of the largest newly delinquent retail loans this month is secured by a regional mall. The $216 million Clackamas Town Center loan failed to pay off at its October 2022 maturity date. Prior to the maturity default, the loan had been current in payment throughout its term. The loan transferred to special servicing in July 2022 in anticipation of the maturity default. The loan collateral is a 1.4 million-sf regional mall located 10 miles outside of Portland, OR.

Aside from retail, delinquency rates for lodging (4.47%), multifamily (0.89%), and industrial (0.21%) exhibited month-over-month decreases during the October 2022 reporting period. The delinquency rate for loans secured by office properties (1.68%) was flat compared to the prior month.

Despite zero month-over-month change in delinquency for office loans, the special servicing rate for office increased modestly to 3.36%, compared to 3.31% from the prior month. Notable loan transfers to special servicing this month included a $47 million mortgage secured by One Westchase Center in Houston, TX and a $38.4 million mortgage secured by 1 South Broad Street in Philadelphia, PA. Both office buildings, which each have over 400,000 sf in NRA, are experiencing issues with low occupancy that is likely impacting the respective borrowers’ refinancing efforts. One Westchase Center was approximately 71% occupied as of June 2022 and occupancy declined to 51% at 1 South Broad Street after its primary tenant, Wells Fargo, vacated at year-end 2020.

The lodging sector exhibited the sharpest decline in its special servicing rate compared to September 2022, decreasing to 6.43% during October 2022 — equal to a 6% decline. Declines in special servicing rates for retail and multifamily were nominal.

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 increased to 5.14%, which followed a relatively sharp increase in the overall delinquency rate. The increase in the overall CMBS distressed rate was primarily caused by maturity defaults of loans secured by retail properties, including a concentration of regional malls. Two such examples are a $418.5 million mortgage secured by the 1.9 million-sf Palisades Center Mall in West Nyack, NY and a $195 million mortgage secured by the 1.1 million-sf Valencia Town Center in Santa Clarita, CA. Both loans transferred to special servicing in late-September 2022 due to issues related to maturity default risk. For additional information about these two loans, click View Details below:

[View Details][View Details]
LoanPalisades Center MallValencia Town Center
Balance$418,500,000$195,000,000
Special Servicer Transfer Date9/27/20229/26/2022
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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. 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, and GSE Agency loan and property data.

CRED-iQ-November-2022-Delinquency-ReportDownload

Q3 2022 CMBS Auction Recap

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CRED iQ
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Properties and mortgage notes securing more than $320 million in outstanding CMBS debt were auctioned during Q3 2022, according to CRED iQ’s observations of impending losses for investors. The volume of CMBS auctions during Q3 2022 increased compared to Q2 2022 when 28 auctions with approximately $300 million in outstanding CMBS debt took place. Sales through an auction can take a couple months to close; however, sale transactions can be delayed or even fail to close after a due diligence process. Additional complications, as of late, include the acquisition loan repricing from the prospective buyers’ perspective. Of the 28 auctions from the previous quarter, there were nine auctioned assets with outstanding CMBS debt of $68 million that remained unresolved as of the September 2022 reporting period.

CRED iQ monitored over 40 individual CMBS property and note sales through their respective auction processes during Q3 2022. Approximately 65% of those auctions, 26 in total, involved distressed sales facilitated by a special servicer. Of the 26 specially serviced assets, there were 16 REO properties with titles that transferred to respective CMBS trusts. Special servicers are tasked with liquidating these properties, sometimes after a period of stabilization, for maximum proceeds on behalf of CMBS certificate holders.

Of the 16 REO properties that were auctioned, the average holding period between title acquisition and auction date was approximately 2 years. The shortest holding period was slightly over three months, and the longest holding period was just under six years. The quickest sale from REO title date to auction date was an 86-key Hampton Inn & Suites located in Shelby, NC. The hotel transferred to special servicing in November 2020 due to delinquency despite previously receiving pandemic-related debt relief in June 2020. The special servicer acquired title on behalf of the CMBS trust April 2022 and the property was auctioned in August 2022. Notably, the high bid price from the auction did not meet the asset’s pre-determined reserve price but the high bid was subsequently approved post-auction with an anticipated sale closing in mid-October 2022.

By deal vintage, auctions over the past three months were most prevalent among 2017 vintage securitizations. Approximately 25% of the auctions during Q3 2022 were associated with a $725 million single-borrower large loan CMBS securitization. The underlying mortgage had an October 2022 maturity date and is secured by 138 lodging properties across 27 states. As of September 2022, the borrower had requested a maturity extension and waivers to unencumber select properties from the mortgage debt. The property release waivers allowed for the sales of certain properties in the portfolio, including some via auction.

Like the previous quarter, hotels were the most common property type for auctions with 29 attempted sales during Q3 2022. Retail properties also comprised a high quantity of auctions with 10 attempted sales. By market, the auctioned assets were dispersed geographically. Houston and Dallas were notable MSAs with exposure to multiple auctions of CMBS properties.

CRED iQ observed insights into pricing discovery for properties that resulted from assets’ final bids. Approximately half of the Q3 2022 auctioned CMBS properties were appraised in 2020 or later. Excluding assets with pre-2020 appraisals, approximately 45% of the auctioned assets were observed to have received final bids that were higher than most recent appraisals. One notable final bid premium over the asset’s most recent appraisal was a 13,905-sf former freestanding Walgreens located outside of Detroit, MI that was converted into a Footlocker; the single-tenant building had a final bid that was over 85% higher than its February 2022 appraisal.

When properties traded at a discount to the most recent appraisals, the average difference was approximately -16%. The most severe discount from appraisal to final bid, equal to -97%, was a 57-key Fairfield Inn & Suites hotel located in Jackson, MI. The property is part of a 12-hotel portfolio that secures a $45 million mortgage that is in maturity default. Several of the other hotels in the portfolio also participated in auctions throughout 2022.

In summary, the average difference between final bid prices and most recent appraisals was approximately -6%. Isolating for specially serviced assets resulted in a smaller average difference of -4%. Lodging and retail property types were the only sectors with multiple auction events. Lodging properties, on average, exhibited an 8% deficit between recent appraisals and final auction bids. Retail properties fared better with a +8% variance between most recent appraisals and final bids.

For access to the underlying data behind this research, please contact us: team@cred-iq.com.

Chart-Finance-x-CRED-iQ-Q3-2022-CMBS-Auction-RecapDownload

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, and GSE Agency loan and property data.

Retail Refinance Recon: Mid-Atlantic Region

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CRED iQ
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CRED iQ curated a regional catalog of commercial real estate loans with maturities coming due over the next three years. The namesake Retail Refi Recon focuses on loans secured by retail properties located in the Mid-Atlantic region of the U.S, which includes New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Virginia, and Washington, DC. Also included are distressed loans that have transferred to special servicing prior to 2022 maturity dates as well as REO assets slated for liquidation.

To download a PDF of this white paper or request access to the underlying data, please click the link below:

Explore Mid-Atlantic Retail Market

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.

CMBS – September 2022 Loan Dispositions and Payoffs

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CRED iQ
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0

CMBS conduit transactions incurred approximately $65 million in realized losses during September 2022 via the workout of distressed assets. CRED iQ identified 15 workouts classified as dispositions, liquidations, or discounted payoffs in September 2022. Of the 15 workouts, only two of the assets were resolved without a loss. Of the 13 workouts resulting in losses, severities for the month of September ranged from less than 1% to 100%, based on outstanding balances at disposition. Aggregate realized losses in September were 69% lower than the amount of losses in August. On a monthly basis, realized losses for CMBS conduit and SBLL transactions averaged approximately $137.5 million year-to-date.

Workouts were split evenly between property types with five office, retail, and lodging dispositions apiece. Distressed workouts for office properties this month had the highest level of aggregate realized losses (over $28 million) and the highest average loss severity (56.5%). Additionally, the liquidation of an office property represented the largest individual realized loss from out observations. A former Verizon Wireless Center in Albuquerque, NM had outstanding debt totaling $20.5 million before it was liquidated in August 2022. The vacant property had been REO since May 2018 and spent more than five years in special servicing. Realized losses to the CMBS trust equaled approximately $11.9 million, equal to a 57.9% loss severity based on the asset’s outstanding balance prior to disposition.

The largest loss by severity was associated with North Branch Outlet Center, a retail property located 45 miles north of Minneapolis, MN. The 134,480-sf outlet center became REO in October 2016 and the total workout period took over six years. The asset had outstanding debt of $8.2 prior to its liquidation and was resolved with a 100% loss severity. The property was 52% occupied at the time of disposition and occupancy was unable to be materially improved throughout the workout period.

The largest workout by outstanding debt amount was the liquidation of the $47.8 million Shops at Boca Park REO asset. Shops at Boca Park is a 277,472-sf retail property located in Las Vegas, NV. The asset had been in special servicing since December 2015 and was resolved with a 4.6% loss severity based on the balance at disposition.

Excluding defeased loans, there was approximately $7 billion in securitized debt among CMBS conduit, SBLL, and Freddie Mac securitizations that was paid off or liquidated in September, which was approximately a 40% increase compared to $5 billion in August 2022. In September, 3.6% of the loan resolutions were categorized as dispositions, liquidations, or discounted payoffs. The percentage of distressed workouts was 7.7% in the prior month. Approximately 42% of the loans were paid off with prepayment penalties.

By property type, multifamily had the highest total of outstanding debt pay off in September with 53% of the total by balance. The relatively higher percentage of multifamily debt payoff was driven by refinancing of floating rate debt. Office and retail had the next highest outstanding debt pay off with 11% of the total. Among the largest individual payoffs was a $390 million mortgage secured by Vornado’s 38,814-sf retail condo at 666 Fifth Avenue, located in Midtown Manhattan.

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.

CRED-iQ-CMBS-September-2022-Dispositions-and-PayoffsDownload

Market Delinquency Tracker – October 2022

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CRED iQ
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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 September 2022 are presented below for the 50 largest MSAs, broken out by property type for a granular view of distress by market-sector.

Slightly more than half of the 50 largest MSAs tracked by CRED iQ exhibited month-over-month decreases in the percentage of distressed CRE loans within the CMBS universe. There were 27 markets, or 54% of the Top 50, with declines in distressed rates for commercial mortgages compared to the prior month. For the first time in the past three months, total markets with month-over-month improvements in distressed rates outnumbered markets with distressed rate increases. Markets with the highest level of improvements in distress included Minneapolis (-1.15%), Hartford (-0.82%), Milwaukee (-0.80%). To be fair, these three markets are also among those with the highest percentage of distressed loans overall. Conversely, the Philadelphia market (+1.95%) had the largest percentage increase in distressed commercial real estate loans during September 2022.

Taking a more granular analysis of the Top 50 markets, CRED iQ further delineated individual market distressed rates by property type for a market-sector view. Much of the improvement in distress across markets can be attributed to the lodging sector. The lodging property type was associated with seven of the 10 sharpest percentage declines in distressed rates across market-sectors during September 2022. There were numerous examples of loans that were rehabilitated and returned to master servicers this month after being with special servicers. Among them included the $23.6 million Embassy Suites St. Louis loan, which positively impacted the St. Louis lodging market (-8.7%), the $12.1 million HGI Memphis Wolfchase Galleria loan, which improved the Memphis hotel market (-6.9%), and the $72.6 million Holiday Inn – 6th Avenue loan, which helped lower distress in the New York City lodging market (-4.0%).

Loans secured by office properties were a common denominator among the 10 highest percentage increases in distressed loans across market-sectors. MSAs for Columbus, OH, Denver, Chicago, and Bridgeport exhibited notably high increases in office distress this month. The market-sector with the largest increase in the percentage of distressed loans was Philadelphia – Mixed Use, which equaled 30.3%. The sharp increase was caused by the $368 million 1500 Market Street loan, which transferred to special servicing in August 2022 due to maturity default. The loan is secured by a 1.8 million-sf mixed-use (office/retail) building in Center City Philadelphia.

The Minneapolis MSA has the highest overall distressed rate at 20.6%, which was a decrease compared to the prior month distressed rate of 21.8%. Cleveland (9.9%), Birmingham (9.6%), Hartford (8.6%), and Portland (8.5%) comprise the remaining markets with the highest rates of distress. Portland was a new addition to the Top 5 distressed markets this month. The Jacksonville market (0.1%) had the lowest percentage of distress among the Top 50 MSAs for the second consecutive month.

For the full CRED DQ Report, download here:

The-CRED-DQ-Market-Delinquency-Tracker-October-2022Download
 MSA – Property Type  DQ/SS
(millions) 		DS/SS
(%)		Monthly
Change
Allentown-Bethlehem-Easton, PA-NJ MSA$77.72.5%0.0%
Allentown – Hotel$0.00.0%0.0%
Allentown – Industrial$0.00.0%0.0%
Allentown – Multifamily$0.00.0%0.0%
Allentown – Office$58.619.1%-2.1%
Allentown – Other$0.00.0%0.0%
Allentown – Retail$19.15.0%0.0%
Allentown – Self Storage$0.00.0%0.0%
Atlanta – Atlanta-Sandy Springs-Marietta, GA MSA$524.11.9%0.1%
Atlanta – Hotel$140.86.9%-0.3%
Atlanta – Industrial$0.00.0%0.0%
Atlanta – Multifamily$0.00.0%0.0%
Atlanta – Office$69.43.3%0.7%
Atlanta – Other$0.00.0%0.0%
Atlanta – Retail$313.815.6%0.9%
Atlanta – Self Storage$0.00.0%0.0%
Austin – Austin-Round Rock, TX MSA$150.11.7%-0.1%
Austin – Hotel$50.56.4%-1.3%
Austin – Industrial$0.00.0%0.0%
Austin – Multifamily$40.10.7%0.0%
Austin – Office$0.00.0%0.0%
Austin – Other$10.12.6%0.1%
Austin – Retail$49.46.4%0.4%
Austin – Self Storage$0.00.0%0.0%
Baltimore – Baltimore-Towson, MD MSA$374.13.8%-0.3%
Baltimore – Hotel$50.210.6%-1.0%
Baltimore – Industrial$0.00.0%0.0%
Baltimore – Multifamily$3.80.1%0.0%
Baltimore – Office$57.53.3%-0.1%
Baltimore – Other$11.64.5%0.1%
Baltimore – Retail$250.922.7%0.2%
Baltimore – Self Storage$0.00.0%0.0%
Birmingham – Birmingham-Hoover, AL MSA$283.09.6%-0.1%
Birmingham – Hotel$0.00.0%0.0%
Birmingham – Industrial$0.00.0%0.0%
Birmingham – Multifamily$2.10.2%0.0%
Birmingham – Office$95.218.8%0.2%
Birmingham – Other$1.24.7%4.7%
Birmingham – Retail$184.426.2%0.7%
Birmingham – Self Storage$0.00.0%0.0%
Boston – Boston-Cambridge-Quincy, MA-NH MSA$131.50.7%0.1%
Boston – Hotel$26.71.6%0.0%
Boston – Industrial$0.00.0%0.0%
Boston – Multifamily$0.00.0%0.0%
Boston – Office$14.50.2%0.2%
Boston – Other$0.00.0%0.0%
Boston – Retail$90.28.3%1.4%
Boston – Self Storage$0.00.0%0.0%
Bridgeport – Bridgeport-Stamford-Norwalk, CT MSA$182.44.7%0.8%
Bridgeport – Hotel$37.834.1%-10.2%
Bridgeport – Industrial$0.00.0%0.0%
Bridgeport – Multifamily$0.00.0%0.0%
Bridgeport – Office$134.812.9%2.6%
Bridgeport – Other$9.82.5%0.0%
Bridgeport – Retail$0.00.0%0.0%
Bridgeport – Self Storage$0.00.0%0.0%
Charlotte – Charlotte-Gastonia-Concord, NC-SC MSA$256.63.4%0.2%
Charlotte – Hotel$71.47.7%-0.4%
Charlotte – Industrial$0.00.0%0.0%
Charlotte – Multifamily$0.00.0%0.0%
Charlotte – Office$0.00.0%0.0%
Charlotte – Other$100.540.0%0.0%
Charlotte – Retail$84.78.2%0.6%
Charlotte – Self Storage$0.00.0%0.0%
Chicago – Chicago-Naperville-Joliet, IL-IN-WI MSA$2,331.48.0%0.8%
Chicago – Hotel$851.432.9%1.1%
Chicago – Industrial$0.00.0%0.0%
Chicago – Multifamily$58.90.6%0.0%
Chicago – Office$940.311.3%2.7%
Chicago – Other$209.08.3%0.1%
Chicago – Retail$271.99.3%0.0%
Chicago – Self Storage$0.00.0%0.0%
Cincinnati – Cincinnati-Middletown, OH-KY-IN MSA$118.63.1%0.0%
Cincinnati – Hotel$87.229.6%-3.6%
Cincinnati – Industrial$0.00.0%0.0%
Cincinnati – Multifamily$2.30.1%0.0%
Cincinnati – Office$0.00.0%0.0%
Cincinnati – Other$6.82.6%0.1%
Cincinnati – Retail$22.24.0%0.0%
Cincinnati – Self Storage$0.00.0%0.0%
Cleveland – Cleveland-Elyria-Mentor, OH MSA$402.49.9%0.3%
Cleveland – Hotel$85.247.4%7.8%
Cleveland – Industrial$0.00.0%0.0%
Cleveland – Multifamily$5.60.3%0.0%
Cleveland – Office$130.014.5%-0.6%
Cleveland – Other$173.943.0%-0.2%
Cleveland – Retail$7.71.1%0.0%
Cleveland – Self Storage$0.00.0%0.0%
Columbus, OH – Columbus, OH MSA$221.13.2%-0.2%
Columbus, OH – Hotel$37.513.4%-11.5%
Columbus, OH – Industrial$11.73.0%-0.4%
Columbus, OH – Multifamily$22.20.5%0.0%
Columbus, OH – Office$30.24.8%2.9%
Columbus, OH – Other$0.00.0%0.0%
Columbus, OH – Retail$119.615.7%0.1%
Columbus, OH – Self Storage$0.00.0%0.0%
Dallas – Dallas-Fort Worth-Arlington, TX MSA$279.30.9%0.1%
Dallas – Hotel$84.32.5%-0.8%
Dallas – Industrial$1.70.1%0.0%
Dallas – Multifamily$50.40.2%0.1%
Dallas – Office$83.42.8%1.3%
Dallas – Other$4.90.2%0.0%
Dallas – Retail$54.62.6%0.1%
Dallas – Self Storage$0.00.0%0.0%
Denver – Denver-Aurora, CO MSA$325.82.0%0.4%
Denver – Hotel$22.82.8%-0.3%
Denver – Industrial$0.00.0%0.0%
Denver – Multifamily$8.00.1%0.1%
Denver – Office$182.88.9%2.8%
Denver – Other$94.39.8%0.0%
Denver – Retail$17.91.4%0.0%
Denver – Self Storage$0.00.0%0.0%
Detroit – Detroit-Warren-Livonia, MI MSA$290.42.9%-0.4%
Detroit – Hotel$103.915.5%-2.0%
Detroit – Industrial$0.00.0%0.0%
Detroit – Multifamily$0.00.0%0.0%
Detroit – Office$14.60.6%-0.2%
Detroit – Other$21.92.7%0.1%
Detroit – Retail$150.010.5%-0.5%
Detroit – Self Storage$0.00.0%0.0%
Hartford – Hartford-West Hartford-East Hartford, CT MSA$199.68.6%-0.8%
Hartford – Hotel$16.718.8%-26.1%
Hartford – Industrial$0.00.0%0.0%
Hartford – Multifamily$0.00.0%0.0%
Hartford – Office$25.39.5%0.7%
Hartford – Other$0.00.0%0.0%
Hartford – Retail$157.654.6%7.8%
Hartford – Self Storage$0.00.0%0.0%
Houston – Houston-Sugar Land-Baytown, TX MSA$1,047.84.4%-0.2%
Houston – Hotel$387.041.0%-6.1%
Houston – Industrial$0.00.0%0.0%
Houston – Multifamily$26.80.2%-0.1%
Houston – Office$483.914.0%0.7%
Houston – Other$44.36.5%0.0%
Houston – Retail$105.82.8%0.0%
Houston – Self Storage$0.00.0%0.0%
Indianapolis – Indianapolis-Carmel, IN MSA$219.24.0%-0.4%
Indianapolis – Hotel$106.416.9%-0.7%
Indianapolis – Industrial$0.00.0%0.0%
Indianapolis – Multifamily$40.41.4%0.0%
Indianapolis – Office$61.810.5%-2.6%
Indianapolis – Other$4.91.9%0.0%
Indianapolis – Retail$5.61.9%0.2%
Indianapolis – Self Storage$0.00.0%0.0%
Jacksonville – Jacksonville, FL MSA$5.00.1%-0.2%
Jacksonville – Hotel$0.00.0%-2.5%
Jacksonville – Industrial$0.00.0%0.0%
Jacksonville – Multifamily$3.10.1%0.0%
Jacksonville – Office$0.00.0%0.0%
Jacksonville – Other$0.00.0%0.0%
Jacksonville – Retail$1.90.5%0.0%
Jacksonville – Self Storage$0.00.0%0.0%
Kansas City – Kansas City, MO-KS MSA$120.52.2%-0.5%
Kansas City – Hotel$74.227.5%0.2%
Kansas City – Industrial$0.00.0%0.0%
Kansas City – Multifamily$3.80.1%0.0%
Kansas City – Office$0.00.0%0.0%
Kansas City – Other$21.110.3%0.0%
Kansas City – Retail$21.33.8%-3.3%
Kansas City – Self Storage$0.00.0%0.0%
Las Vegas – Las Vegas-Paradise, NV MSA$275.31.2%0.1%
Las Vegas – Hotel$0.00.0%0.0%
Las Vegas – Industrial$0.00.0%0.0%
Las Vegas – Multifamily$45.40.7%0.7%
Las Vegas – Office$0.00.0%0.0%
Las Vegas – Other$0.00.0%0.0%
Las Vegas – Retail$229.95.0%-0.1%
Las Vegas – Self Storage$0.00.0%0.0%
Los Angeles – Los Angeles-Long Beach-Santa Ana, CA MSA$595.21.1%0.1%
Los Angeles – Hotel$118.01.8%0.2%
Los Angeles – Industrial$0.00.0%0.0%
Los Angeles – Multifamily$13.30.1%0.0%
Los Angeles – Office$62.80.6%0.3%
Los Angeles – Other$85.32.7%0.1%
Los Angeles – Retail$315.85.0%0.3%
Los Angeles – Self Storage$0.00.0%0.0%
Louisville – Louisville/Jefferson County, KY-IN MSA$72.12.7%0.0%
Louisville – Hotel$0.00.0%0.0%
Louisville – Industrial$0.00.0%0.0%
Louisville – Multifamily$0.00.0%0.0%
Louisville – Office$0.00.0%0.0%
Louisville – Other$0.00.0%0.0%
Louisville – Retail$72.115.6%0.9%
Louisville – Self Storage$0.00.0%0.0%
Memphis – Memphis, TN-AR-MS MSA$85.43.6%0.3%
Memphis – Hotel$12.06.0%-6.9%
Memphis – Industrial$0.00.0%0.0%
Memphis – Multifamily$6.90.6%0.0%
Memphis – Office$0.00.0%0.0%
Memphis – Other$5.417.2%1.2%
Memphis – Retail$61.116.4%3.1%
Memphis – Self Storage$0.00.0%0.0%
Miami – Miami-Fort Lauderdale-Pompano Beach, FL MSA$268.71.1%-0.2%
Miami – Hotel$11.00.2%0.0%
Miami – Industrial$0.00.0%0.0%
Miami – Multifamily$0.00.0%0.0%
Miami – Office$4.00.2%0.0%
Miami – Other$8.80.6%0.0%
Miami – Retail$245.04.5%-0.7%
Miami – Self Storage$0.00.0%0.0%
Milwaukee – Milwaukee-Waukesha-West Allis, WI MSA$196.38.3%-0.8%
Milwaukee – Hotel$5.64.0%-12.1%
Milwaukee – Industrial$0.00.0%0.0%
Milwaukee – Multifamily$0.00.0%0.0%
Milwaukee – Office$83.116.9%-0.9%
Milwaukee – Other$0.60.5%0.0%
Milwaukee – Retail$107.025.2%1.8%
Milwaukee – Self Storage$0.00.0%0.0%
Minneapolis – Minneapolis-St. Paul-Bloomington, MN-WI MSA$1,728.420.6%-1.1%
Minneapolis – Hotel$223.940.0%-5.2%
Minneapolis – Industrial$0.00.0%0.0%
Minneapolis – Multifamily$0.00.0%0.0%
Minneapolis – Office$92.24.4%-0.3%
Minneapolis – Other$4.11.0%0.0%
Minneapolis – Retail$1,408.277.3%-0.3%
Minneapolis – Self Storage$0.00.0%0.0%
Nashville – Nashville-Davidson-Murfreesboro-Franklin, TN MSA$68.41.1%0.0%
Nashville – Hotel$59.04.5%-0.2%
Nashville – Industrial$0.00.0%0.0%
Nashville – Multifamily$0.00.0%0.0%
Nashville – Office$0.00.0%0.0%
Nashville – Other$0.00.0%0.0%
Nashville – Retail$9.41.3%0.0%
Nashville – Self Storage$0.00.0%0.0%
New Orleans – New Orleans-Metairie-Kenner, LA MSA$124.33.7%-0.3%
New Orleans – Hotel$60.05.5%-0.7%
New Orleans – Industrial$0.00.0%0.0%
New Orleans – Multifamily$0.00.0%-0.9%
New Orleans – Office$27.25.0%-0.2%
New Orleans – Other$14.810.1%0.5%
New Orleans – Retail$22.23.7%0.5%
New Orleans – Self Storage$0.00.0%0.0%
New York City – New York-Northern New Jersey-Long Island, NY-NJ-PA MSA$5,239.64.1%-0.1%
New York City – Hotel$920.024.0%-4.0%
New York City – Industrial$64.71.6%-0.8%
New York City – Multifamily$192.80.5%-0.2%
New York City – Office$1,409.43.1%-0.3%
New York City – Other$1,439.86.2%0.4%
New York City – Retail$1,213.09.9%1.8%
New York City – Self Storage$0.00.0%0.0%
Orlando – Orlando-Kissimmee, FL MSA$179.71.8%0.0%
Orlando – Hotel$84.63.2%0.2%
Orlando – Industrial$0.00.0%0.0%
Orlando – Multifamily$0.00.0%0.0%
Orlando – Office$47.010.6%-2.0%
Orlando – Other$0.00.0%0.0%
Orlando – Retail$48.15.2%0.9%
Orlando – Self Storage$0.00.0%0.0%
Philadelphia – Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA$671.13.3%2.0%
Philadelphia – Hotel$106.012.0%2.8%
Philadelphia – Industrial$0.00.0%0.0%
Philadelphia – Multifamily$41.40.5%0.0%
Philadelphia – Office$115.93.2%-0.1%
Philadelphia – Other$388.530.3%28.7%
Philadelphia – Retail$19.30.9%0.0%
Philadelphia – Self Storage$0.00.0%0.0%
Phoenix – Phoenix-Mesa-Scottsdale, AZ MSA$268.41.4%0.2%
Phoenix – Hotel$23.41.5%-0.7%
Phoenix – Industrial$0.00.0%0.0%
Phoenix – Multifamily$60.60.5%0.5%
Phoenix – Office$40.91.9%0.1%
Phoenix – Other$8.61.3%0.2%
Phoenix – Retail$134.98.3%0.0%
Phoenix – Self Storage$0.00.0%0.0%
Pittsburgh – Pittsburgh, PA MSA$65.01.4%0.4%
Pittsburgh – Hotel$15.98.7%-0.9%
Pittsburgh – Industrial$0.00.0%0.0%
Pittsburgh – Multifamily$0.00.0%0.0%
Pittsburgh – Office$30.63.2%0.9%
Pittsburgh – Other$18.54.6%2.7%
Pittsburgh – Retail$0.00.0%0.0%
Pittsburgh – Self Storage$0.00.0%0.0%
Portland – Portland-Vancouver-Beaverton, OR-WA MSA$586.08.5%-0.3%
Portland – Hotel$357.039.4%-4.9%
Portland – Industrial$0.00.0%0.0%
Portland – Multifamily$0.00.0%0.0%
Portland – Office$12.93.0%-0.2%
Portland – Other$0.00.0%0.0%
Portland – Retail$216.043.1%0.6%
Portland – Self Storage$0.00.0%0.0%
Raleigh – Raleigh-Cary, NC MSA$21.90.6%0.0%
Raleigh – Hotel$15.37.4%-1.2%
Raleigh – Industrial$0.00.0%0.0%
Raleigh – Multifamily$0.00.0%0.0%
Raleigh – Office$0.00.0%0.0%
Raleigh – Other$6.74.6%0.2%
Raleigh – Retail$0.00.0%0.0%
Raleigh – Self Storage$0.00.0%0.0%
Richmond – Richmond, VA MSA$67.42.1%0.0%
Richmond – Hotel$0.00.0%0.0%
Richmond – Industrial$0.00.0%0.0%
Richmond – Multifamily$0.00.0%0.0%
Richmond – Office$0.00.0%0.0%
Richmond – Other$13.08.9%0.0%
Richmond – Retail$54.411.9%0.8%
Richmond – Self Storage$0.00.0%0.0%
Riverside – Riverside-San Bernardino-Ontario, CA MSA$279.52.7%-0.2%
Riverside – Hotel$51.110.5%-1.8%
Riverside – Industrial$0.00.0%0.0%
Riverside – Multifamily$0.00.0%0.0%
Riverside – Office$0.00.0%0.0%
Riverside – Other$0.00.0%-2.9%
Riverside – Retail$228.411.3%0.2%
Riverside – Self Storage$0.00.0%0.0%
Sacramento – Sacramento-Arden-Arcade-Roseville, CA MSA$16.60.3%0.0%
Sacramento – Hotel$5.61.4%-0.3%
Sacramento – Industrial$0.00.0%0.0%
Sacramento – Multifamily$0.00.0%0.0%
Sacramento – Office$0.00.0%0.0%
Sacramento – Other$11.02.8%0.0%
Sacramento – Retail$0.00.0%0.0%
Sacramento – Self Storage$0.00.0%0.0%
Salt Lake City – Salt Lake City, UT MSA$21.00.5%0.0%
Salt Lake City – Hotel$21.07.4%-0.4%
Salt Lake City – Industrial$0.00.0%0.0%
Salt Lake City – Multifamily$0.00.0%0.0%
Salt Lake City – Office$0.00.0%0.0%
Salt Lake City – Other$0.00.0%0.0%
Salt Lake City – Retail$0.00.0%0.0%
Salt Lake City – Self Storage$0.00.0%0.0%
San Antonio – San Antonio, TX MSA$140.92.3%0.0%
San Antonio – Hotel$16.46.7%-0.2%
San Antonio – Industrial$0.00.0%0.0%
San Antonio – Multifamily$7.90.2%0.0%
San Antonio – Office$0.00.0%0.0%
San Antonio – Other$0.00.0%0.0%
San Antonio – Retail$116.620.2%0.7%
San Antonio – Self Storage$0.00.0%0.0%
San Diego – San Diego-Carlsbad-San Marcos, CA MSA$55.80.5%0.0%
San Diego – Hotel$39.42.0%-0.1%
San Diego – Industrial$0.00.0%0.0%
San Diego – Multifamily$4.20.1%0.0%
San Diego – Office$0.00.0%0.0%
San Diego – Other$9.31.3%0.0%
San Diego – Retail$2.90.2%0.0%
San Diego – Self Storage$0.00.0%0.0%
San Francisco – San Francisco-Oakland-Fremont, CA MSA$201.60.8%0.0%
San Francisco – Hotel$109.04.5%-1.0%
San Francisco – Industrial$0.00.0%0.0%
San Francisco – Multifamily$0.00.0%0.0%
San Francisco – Office$0.00.0%0.0%
San Francisco – Other$38.61.4%0.0%
San Francisco – Retail$54.04.5%0.5%
San Francisco – Self Storage$0.00.0%0.0%
San Jose – San Jose-Sunnyvale-Santa Clara, CA MSA$32.00.2%-0.2%
San Jose – Hotel$32.00.5%-0.6%
San Jose – Industrial$0.00.0%0.0%
San Jose – Multifamily$0.00.0%0.0%
San Jose – Office$0.00.0%0.0%
San Jose – Other$0.00.0%0.0%
San Jose – Retail$0.00.0%0.0%
San Jose – Self Storage$0.00.0%0.0%
Seattle – Seattle-Tacoma-Bellevue, WA MSA$73.50.3%-0.1%
Seattle – Hotel$73.55.3%-1.4%
Seattle – Industrial$0.00.0%0.0%
Seattle – Multifamily$0.00.0%0.0%
Seattle – Office$0.00.0%0.0%
Seattle – Other$0.00.0%0.0%
Seattle – Retail$0.00.0%0.0%
Seattle – Self Storage$0.00.0%0.0%
St. Louis – St. Louis, MO-IL MSA$205.14.9%-0.7%
St. Louis – Hotel$1.70.6%-8.7%
St. Louis – Industrial$0.00.0%0.0%
St. Louis – Multifamily$0.00.0%-0.4%
St. Louis – Office$0.00.0%0.0%
St. Louis – Other$19.64.0%0.0%
St. Louis – Retail$183.819.4%-0.3%
St. Louis – Self Storage$0.00.0%0.0%
Tampa – Tampa-St. Petersburg-Clearwater, FL$133.71.5%0.0%
Tampa – Hotel$59.18.6%-0.9%
Tampa – Industrial$0.00.0%0.0%
Tampa – Multifamily$0.00.0%0.0%
Tampa – Office$23.53.6%0.1%
Tampa – Other$0.00.0%0.0%
Tampa – Retail$51.17.0%0.3%
Tampa – Self Storage$0.00.0%0.0%
Tucson – Tucson, AZ MSA$159.34.8%-0.1%
Tucson – Hotel$0.00.0%-1.4%
Tucson – Industrial$0.00.0%0.0%
Tucson – Multifamily$0.00.0%0.0%
Tucson – Office$0.00.0%0.0%
Tucson – Other$0.00.0%0.0%
Tucson – Retail$159.319.9%0.7%
Tucson – Self Storage$0.00.0%0.0%
Virginia Beach – Virginia Beach-Norfolk-Newport News, VA-NC MSA$185.04.0%0.0%
Virginia Beach – Hotel$0.00.0%0.0%
Virginia Beach – Industrial$21.28.0%0.0%
Virginia Beach – Multifamily$0.00.0%-0.2%
Virginia Beach – Office$0.00.0%-0.3%
Virginia Beach – Other$0.00.0%0.0%
Virginia Beach – Retail$163.822.9%1.3%
Virginia Beach – Self Storage$0.00.0%0.0%
Washington, DC – Washington-Arlington-Alexandria, DC-VA-MD-WV MSA$534.21.8%0.2%
Washington, DC – Hotel$49.04.4%-2.1%
Washington, DC – Industrial$0.00.0%0.0%
Washington, DC – Multifamily$0.00.0%0.0%
Washington, DC – Office$377.64.9%1.4%
Washington, DC – Other$32.92.0%0.0%
Washington, DC – Retail$74.82.2%-0.8%
Washington, DC – Self Storage$0.00.0%0.0%
Grand Total$20,091.92.9%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.

October 2022 Delinquency Report

By
CRED iQ
-
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 declined during the September 2022 reporting period, one month after its first month-over-month increase in over two years. This month, the delinquency rate, 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 was 3.00%, which was 21 bps lower than last month’s delinquency rate of 3.21%. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that are with the special servicer (delinquent and non-delinquent), declined month-over-month to 4.79% from 4.91%. The special servicing rate is still at its highest level since May 2022 despite this month’s decline. Aggregating the two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 5.02% of CMBS loans that are specially serviced, delinquent, or a combination of both. The overall distressed rate decreased compared to the prior month’s distressed rate of 5.10%. These distressed rates typically track slightly higher than special servicing rates as most delinquent loans are also with the special servicer.

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

By property type, there were variations in trends among delinquency rates this month. The office and retail sectors exhibited month-over-month increases in delinquency while the lodging (5.09%), multifamily (0.91%), and industrial (0.23%) sectors exhibited delinquency rate declines. The office delinquency rate increased to 1.68% in September, which was 11% higher than August. One of the more notable loans to become delinquent this month was a $51 million mortgage secured by 700 Broadway, a 424,453-sf office tower located in Denver, CO. The loan was reported as 30 days delinquent as of September 2022. Overall, the office delinquency rate is still lower than it was a year ago when it equaled 2.19%.

The delinquency rate for retail increased modestly to 6.01%, compared to 5.91% a month prior. This is the second consecutive month that the retail delinquency rate has increased. The retail sector has had the highest delinquency rate among all property types since May 2022. A $125 million mortgage secured by 1880 Broadway, an 84,240-sf retail condo located in the Upper West Side of Manhattan, defaulted at maturity on September 6, 2022 and contributed to the increase in retail delinquency.

Special servicing rates across property types were either down or flat in September 2022 compared to the prior month with the exception of the office sector. The special servicing rate for loans secured by office collateral increased to 3.31%. This is the second consecutive month that the office special servicing rate has increased. Additionally, the special servicing rate for office is higher than it was 12 months ago when it equaled 2.89%. The retail sector had the highest special servicing rate among all property types, equaling 10.04%.

The most dramatic improvement in special servicing rates across property types was for the lodging sector. The lodging special servicing rate declined to 6.84%, which was a 14% decrease compared to August. Several notable lodging loans were worked out and returned to the master servicer over the past two months, including a $72.6 million mortgage secured by the Holiday Inn – 6th Avenue, a 226-key hotel located in the Chelsea submarket of Manhattan, NY. The collateral property was sold in June 2022 for $80.3 million and the mortgage was assumed and brought current.

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 decreased to 5.02% in tandem with declines in the overall delinquency and special servicing rates. The decline in the overall CMBS distressed rate was driven primarily by cures of loans secured by lodging properties this month. Conversely, two of the largest loans to became delinquent in September were a $126.8 million mortgage secured by 750 Lexington Avenue, a 382,256-sf mixed-use property (office and retail) located in Midtown Manhattan, and the aforementioned $125 million 1880 Broadway loan. For additional information about these two loans, click View Details below:

[View Details][View Details]
Loan750 Lexington Avenue1880 Broadway
Balance$126,826,217$125,000,000
Loan Status30 Days DelinquentNon-Performing Matured
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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. 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, and GSE Agency loan and property data.

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