{"id":2194,"date":"2022-05-03T13:38:46","date_gmt":"2022-05-03T13:38:46","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=2194"},"modified":"2022-05-03T13:38:46","modified_gmt":"2022-05-03T13:38:46","slug":"market-delinquency-tracker-may-2022","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2022\/05\/03\/market-delinquency-tracker-may-2022\/","title":{"rendered":"Market Delinquency Tracker – May 2022"},"content":{"rendered":"\n

CRED iQ<\/a> 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 are presented below for the 50 largest MSAs, including distressed rates that are stratified by property type\/sector, resulting in a granular view of distress by market-sector.<\/p>\n\n\n\n

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Distressed figures include all properties listed as 30 day delinquent or worse, as well as specially serviced loans within the securitized universe including Conduit, Agency, SBLL, and CRE CLO.<\/figcaption><\/figure><\/div>\n\n\n\n

The majority of Top 50 MSAs exhibited an improvement in the overall rate of distressed commercial mortgages in April 2022. There were approximately 36 markets, or 72% of the Top 50, with month-over-month declines in the percentage of distressed CRE loans. Among the MSAs with the sharpest declines this month were Memphis<\/strong> and Birmingham, AL<\/strong>. By property type, much of the improvement was attributed to the lodging sector. Loans secured by lodging properties accounted for nine of the 10 largest declines in distress by market-sector, including Birmingham, AL<\/strong>, Philadelphia<\/strong>, and Detroit<\/strong>.<\/p>\n\n\n\n

Conversely, the Baltimore<\/strong> market had the highest increase in distressed CRE loans compared to the prior month. The increase was primarily driven by a 30-day delinquency from a loan secured by Chatham Gardens Apartments<\/a>, a 414-unit multifamily property located in Ellicott City, MD.<\/p>\n\n\n\n

Office was the most prevalent property type among increases in distress by market-sector, accounting for four of the Top 10 increases in distress. The Hartford<\/strong> office market experienced the highest month-over-month increase in distress. A $25.6 million mortgage secured by the Stilts Building at 20 Church Street<\/a> transferred to special servicing in March 2022. The Atlanta<\/strong> office market was also among the Top 10 market-sectors to show a higher month-over-month rate of distress. A major contributor to Atlanta\u2019s office distress is a $115.3 million mortgage secured by the Peachtree Center<\/a>, which transferred to special servicing ahead of its April 2022 maturity date. Peachtree Center is a seven-building office complex located in the CBD of Atlanta. Reported occupancy across the seven buildings was 61% as of September 2021. The loan\u2019s initial maturity date was in April 2022, but the borrower has a 12-month extension option.<\/p>\n\n\n\n

Distressed rates for the industrial sector exhibited notable increases in multiple markets this month due to delinquencies and transfers to special servicing. In one example, the $26.1 million FMC Technologies loan transferred to special servicing. The FMC Technologies loan was last featured in CRED iQ\u2019s November 30, 2021 Weekly Asset Review<\/a>, which detailed the implications of single tenant TechnipFMC\u2019s lease expiration on March 31, 2022. The loan\u2019s transfer to special servicing adversely impacted the distressed rate for Houston<\/strong> industrial properties. The distressed rate for industrial properties in the New York City<\/strong> MSA was also adversely impacted this month \u2014 the $51.2 million Supor Industrial Portfolio<\/a> loan, secured by a portfolio of properties in Harrison, NJ, became 30 days delinquent in April 2022.<\/p>\n\n\n\n

The Minneapolis<\/strong> MSA has the highest overall distressed rate at 22.3%, which was a slight decline compared to the prior month. Louisville<\/strong> (17.4%), New Orleans<\/strong> (13.3%), Milwaukee<\/strong> (11.0%), and Cleveland <\/strong>(9.5%) comprise the remaining markets with the highest rates of distress. After a one-month hiatus, the Cleveland<\/strong> MSA re-entered the Top 5 markets with CRE distress. The Sacramento<\/strong> market (0.43%) had the lowest percentage of distress among the Top 50 MSAs, supplanting the Raleigh MSA, which held the distinction previously.<\/p>\n\n\n\n

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