{"id":2515,"date":"2022-07-07T21:09:20","date_gmt":"2022-07-07T21:09:20","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=2515"},"modified":"2022-07-07T21:09:20","modified_gmt":"2022-07-07T21:09:20","slug":"market-delinquency-tracker-july-2022","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2022\/07\/07\/market-delinquency-tracker-july-2022\/","title":{"rendered":"Market Delinquency Tracker – July 2022"},"content":{"rendered":"\n
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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 for the month of June 2022 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

Of the 50 largest MSAs tracked by CRED iQ, there were 43 with month-over-month improvements in the percentage of distressed CRE loans within the CMBS universe. New Orleans <\/strong>(-9.57%)and Louisville<\/strong> (-3.41%) were among the MSAs with the sharpest declines this month. Seven of the 50 largest MSAs exhibited month-over-month increases in distress, including Charlotte<\/strong> (+1.15%) and Virginia Beach<\/strong> (+1.12%) with the sharpest increases in distress in June 2022.<\/p>\n\n\n\n

Hotel and retail were the property types that contributed the most to the many improvements in distressed rates across the Top 50 MSAs. Loans secured by lodging and retail properties accounted for the 10 largest declines in distress by market-sector. This included the lodging sectors for New Orleans<\/strong> and Detroit<\/strong> as well as the retail sectors for Tampa<\/strong> and Cincinnati<\/strong>.<\/p>\n\n\n\n

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One of the largest distressed loans to be cured this month was the $325 million commercial mortgage secured by the 1,193-key Hyatt Regency New Orleans<\/a>. The loan transferred to special servicing in July 2020 due to pandemic-related disruptions to operations but returned to the master servicer on May 17, 2022 after a March 2022 loan modification. The New Orleans market was one of the first to experience widespread distress at the onset of the pandemic and the cure of this loan is a positive step to a recovery, particularly for the lodging market if collateral performance can continue to improve and be maintained.<\/p>\n\n\n\n

The Minneapolis<\/strong> MSA has the highest overall distressed rate at 20.1%, which was a slight decline compared to the prior month distressed rate of 22.1%. Hartford, CT<\/strong> (11.7%), Milwaukee<\/strong> (10.13%), Cleveland<\/strong> (8.37%), and Louisville<\/strong> (6.86%) comprise the remaining markets with the highest rates of distress. New Orleans, which has consistently been among the markets with the highest distressed rates, dropped out of the Top 5 this month after the cure of the Hyatt Regency New Orleans. The Sacramento<\/strong> market (0.1%) had the lowest percentage of distress among the Top 50 MSAs for the third consecutive month. The Raleigh, NC<\/strong> (0.33%) market had the second-lowest percentage of distress.<\/p>\n\n\n\n

For the full CRED iQ Market Delinquency Tracker Report, download here:<\/p>\n\n\n\n