{"id":1642,"date":"2022-01-05T14:32:12","date_gmt":"2022-01-05T14:32:12","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=1642"},"modified":"2022-01-05T14:32:12","modified_gmt":"2022-01-05T14:32:12","slug":"market-delinquency-tracker-january-2022","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2022\/01\/05\/market-delinquency-tracker-january-2022\/","title":{"rendered":"Market Delinquency Tracker – January 2022"},"content":{"rendered":"\n

CRED iQ<\/a> <\/strong>monitors distressed rates (DQ + SS%) <\/strong>and market performance for nearly 400 MSAs across the United States, covering over $900 billion in outstanding CRE debt. Distressed rates for the current month and month-over-month changes are presented below, by property type, for the 50 largest markets. This month, distress in the office sector became more apparent, accounting for four of the 10 largest percentage increases in distress by market-sector. Conversely, the hotel and lodging sectors continue to exhibit improvement \u2014 nine of the 10 biggest improvements by market-sector distress were for retail or lodging.<\/p>\n\n\n\n

The Chicago<\/strong> market exhibited notable increases in distress this month, which was largely caused by the transfer of two loans to special servicing. The $100 million 135 South LaSalle<\/a> loan transferred to special servicing due to insufficient cash flow following the departure of Bank of America from the collateral property at lease expiration in July 2021. The collateral is a 44-story, 1.3 million-sf office tower, but is classified by servicer data as mixed-use (other) due to a ground-floor retail component. Additionally, the $240 million 181 West Madison<\/a> loan transferred to special servicing this month due to the bankruptcy of the sponsor, HNA Group. The collateral is a 50-story office tower located in the Central Loop of the Chicago CBD. This is the second consecutive month that Chicago office has appeared as a market-sector with one of the 10 largest month-over-month increases in distress.<\/p>\n\n\n\n

The Raleigh<\/strong> office market exhibited the second largest month-over-month increase in distress following the delinquency of the $20.8 million Brier Creek Corporate Center I & II<\/a> loan. Occupancy at the collateral property declined to 24% after its largest tenant, biopharmaceutical company UCB<\/a>, vacated at lease expiration in March 2021.<\/p>\n\n\n\n

The Top 5 distressed markets remained unchanged from the prior month. The Minneapolis<\/strong> MSA has the highest overall distressed rate at 23.1%. New Orleans<\/strong> (15.28%), Louisville<\/strong> (14.19%), Cleveland<\/strong> (11.76%), and Milwaukee<\/strong> (10.98%) round out the list of markets with the highest rates of distress. Following an increase in distress within the Allentown<\/strong> MSA, Sacramento<\/strong> (0.54%) now has firm position as the market with the lowest percentage of distress among the Top 50 MSAs.<\/p>\n\n\n\n

For the full CRED DQ Report<\/strong>, download here:<\/p>\n\n\n\n