{"id":2320,"date":"2022-06-09T16:25:18","date_gmt":"2022-06-09T16:25:18","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=2320"},"modified":"2022-06-09T16:25:18","modified_gmt":"2022-06-09T16:25:18","slug":"market-delinquency-tracker-june-2022","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2022\/06\/09\/market-delinquency-tracker-june-2022\/","title":{"rendered":"Market Delinquency Tracker – June 2022"},"content":{"rendered":"\n
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CRED iQ<\/a>\u00a0monitors 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, broken out by property type for a granular view of distress by market-sector.<\/p>\n\n\n\n

On high level, only seven of the Top 50 MSAs tracked by CRED iQ exhibited an overall month-over-month increase in distress in May 2022, without regard to property type sector. There were 43 markets, or 86% of the Top 50, with overall improvements in the percentage of distressed CRE loans within the CMBS universe compared to the prior month. Among the MSAs with the sharpest declines this month were\u00a0Louisville<\/strong>\u00a0and\u00a0Chicago<\/strong>.<\/p>\n\n\n\n

Looking at a more granular level by property type, the lodging sector continues to lead the way as the most common property sector to show improvements, in concert with prior months. Loans secured by lodging properties accounted for six of the 10 largest declines in distress by market-sector, including\u00a0Chicago, Milwaukee, and Bridgeport, CT<\/strong>.<\/p>\n\n\n\n

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The most common property types among increases in distress by market-sector were hotel and retail. The Baltimore<\/strong> mixed-use market experienced one of the highest month-over-month increase in distress. A $67.9 million mortgage secured by the Gallery at Harborplace<\/a> failed to pay off at maturity on May 1, 2022, which contributed to the near entirety of the increase in distress for the market. Gallery at Harborplace is a 406,594-sf mixed-use property comprising retail and office space. The Detroit hotel market was also among the Top 10 market-sectors to show a higher month-over-month rate of distress. A major contributor to Detroit\u2019s lodging distress is a $77 million loan secured by the 453-key Westin Book Cadillac<\/a> hotel. The loan was modified in December 2021 after transferring to special servicing in August 2020. The loan returned to the master servicer in March 2022 and was current as of April but became 30 days delinquent as of May 2022.<\/p>\n\n\n\n

The\u00a0Minneapolis<\/strong>\u00a0MSA has the highest overall distressed rate at 22.1%, which was a slight decline compared to the prior month.\u00a0New Orleans<\/strong> (13.0%), Hartford, CT<\/strong> (10.8%), Milwaukee<\/strong> (10.7%), and Louisville<\/strong> (10.3%) comprise the remaining markets with the highest rates of distress. Hartford<\/strong> made its debut this month among the Top 5 markets with CRE distress, supplanting the Cleveland<\/strong> MSA. The Sacramento<\/strong> market (0.1%) had the lowest percentage of distress among the Top 50 MSAs for the second consecutive month.<\/p>\n\n\n\n

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