{"id":2636,"date":"2022-09-02T14:26:17","date_gmt":"2022-09-02T14:26:17","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=2636"},"modified":"2022-09-02T14:26:17","modified_gmt":"2022-09-02T14:26:17","slug":"cmbs-analytics-market-delinquency-tracker-september-2022","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2022\/09\/02\/cmbs-analytics-market-delinquency-tracker-september-2022\/","title":{"rendered":"Market Delinquency Tracker – September 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 August 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, two out of every three markets exhibited month-over-month increases in the percentage of distressed CRE loans within the CMBS universe. This is the second consecutive month that markets with month-over-month distress outnumbered markets with improvements in distress. This month, regional malls drove much of the change in distress on a market-by-market basis. Sharp increases in distress were observed for the Birmingham<\/strong> MSA (+5.42%) and the Portland, OR<\/strong> MSA (+3.06%). The Louisville<\/strong> (-1.38%) and Baltimore<\/strong> (-1.15%) markets exhibited the greatest month-over-month improvements.<\/p>\n\n\n\n

Retail sectors were the primary drivers behind the increases in distress within the Birmingham<\/strong> and Portland<\/strong> markets. Specifically, a $216 million loan secured by the Clackamas Town Center<\/a>, a 1.4 million-sf regional mall located 10 miles outside of Portland, OR, transferred to special servicing due to imminent maturity default ahead of the loan\u2019s October 2022 maturity date. The maturity default pushed the distressed rate for Portland \u2013 Retail<\/strong> significantly higher to 42.5%. Similarly, Riverchase Galleria<\/a>, an 890,182-sf regional mall located 13 miles south of Birmingham, AL, is part of a three-mall portfolio that secures a $286.7 million mortgage. This loan transferred to special servicing in July 2022 ahead of its September 2022 maturity date due to imminent default. As a resulting development, the distressed rate for the Birmingham \u2013 Retail<\/strong> sector to rose to 22.66%.<\/p>\n\n\n\n

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Despite pockets of increased distress for most market-sectors, there were areas of improvement. The Louisville \u2013 Retail<\/strong> sector exhibited a 10.10% decline in the rate of distressed loans, which was the sharpest month-over-month decline among all property types in the Top 50 MSAs. The relief in distress was attributed in part to the $152.5 million Mall St. Matthews<\/a> loan, which is secured by a 670,000-sf portion of a regional mall. The loan returned to the master servicer following a modification that extended the loan\u2019s maturity date to June 2025.<\/p>\n\n\n\n

The Minneapolis<\/strong> MSA has the highest overall distressed rate at 21.77%, which was an increase compared to the prior month distressed rate of 20.10%. Birmingham<\/strong> (9.69%), Cleveland<\/strong> (9.56%), Hartford, CT<\/strong> (9.4%), and Milwaukee<\/strong> (9.11%) comprise the remaining markets with the highest rates of distress. Birmingham was a new addition to the Top 5 distressed markets this month stemming from increased retail distress. The Jacksonville<\/strong> market (0.26%) had the lowest percentage of distress among the Top 50 MSAs, supplanting the Sacramento<\/strong> MSA (0.30%) which now has the second-lowest distressed rate.<\/p>\n\n\n\n

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