{"id":5445,"date":"2026-08-27T22:12:43","date_gmt":"2026-08-27T22:12:43","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=5445"},"modified":"2026-08-27T22:15:44","modified_gmt":"2026-08-27T22:15:44","slug":"property-types-feeling-the-heat-in-august","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2026\/08\/27\/property-types-feeling-the-heat-in-august\/","title":{"rendered":"Property Types Feeling the August Heat"},"content":{"rendered":"\n

Industrial, hospitality, retail, and self storage post $4.6 billion in new distress<\/em>
<\/h2>\n\n\n\n

The CRED iQ distress rate bottomed at 10.11% in April and rose for three consecutive months, reaching 10.78% in July. The special servicing rate followed the same pattern, climbing from 9.73% to 10.02% over that stretch, and the delinquency rate moved from 8.08% to 8.67%. Early August figures point to a fourth straight increase across all three measures, though the month is still being finalized.<\/p>\n\n\n\n

Property Type Analysis<\/h2>\n\n\n\n

Industrial produced the single largest distressed loan in the entire report. Project JR, a warehouse and logistics property in Carrollton, Texas, hit its maturity date on August 9 and is now flagged Newly Delinquent (Performing Matured) \u2014 past its maturity but still making payments while a resolution is worked out. Across six pari passu notes (CONE 2024-DFW1), the loan totals $687.1 million. Industrial distress overall reached $1.41 billion across 101 severe alerts this month.<\/p>\n\n\n\n

Hospitality distress centered on two large, name-brand assets. The Hyatt Regency New Orleans, a $325 million loan (NOHT 2019-HNLA), transferred to special servicing on a payment default \u2014 the largest new special servicer transfer of the month across any property type. The Ritz-Carlton Sarasota, a $362.5 million loan across four notes (BAMLL 2024-BHP), is now Newly Delinquent (Performing Matured) after missing its September maturity while continuing to pay. Hospitality distress overall reached $1.17 billion across 88 severe alerts this month.<\/p>\n\n\n\n

Retail distress this month clustered in regional and outlet malls, coast to coast. Augusta Mall in Georgia, a combined $155.2 million across two notes, moved to Non-Performing Matured status on a balloon payment default. Fresno Fashion Fair Mall, $140 million combined across two notes, and Harlem USA in Manhattan, $108 million combined, both transferred to special servicing on imminent maturity default. Coral Ridge Mall in Iowa ($61.7 million) and The Shoppes at South Bay in Torrance, California ($37 million) both went newly late. Grove City Premium Outlets in Pennsylvania and Gulfport Outlet Mall in Mississippi, tied to the same MSC 2015-UBS8 deal, added $64 million combined. Retail distress overall reached $951.4 million across 89 severe alerts this month.<\/p>\n\n\n\n

Self storage distress traced almost entirely to two national portfolio operators. A Prime Storage portfolio securitized in BMARK 2023-V4, $57.9 million across 91 properties spanning New York, Florida, Georgia, North Carolina, Connecticut, Arizona, Rhode Island, and Virginia, registered as newly late in the same cycle. A separate U-Haul portfolio in CD 2017-CD6, $23.6 million across 39 properties in more than a dozen states, did the same. Together the two portfolios account for the bulk of self storage\u2019s $124 million in distressed balance this month, in a property type generally treated as close to recession-resistant.<\/p>\n\n\n\n

Market Context<\/h2>\n\n\n\n

A limited refinancing environment combined with elevated interest rates continues to push loans past maturity across property types, not only the office and multifamily loans that typically dominate distress coverage.<\/p>\n\n\n\n

Source: CRED iQ Property Alerts, August 2026. \u201cDistress\u201d includes Newly Late, Newly Delinquent (all maturity statuses), Delinquency Degradation (all stages), and New Special Servicer Transfer alert categories; excludes New Watchlist Loan additions.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Industrial, hospitality, retail, and self storage post $4.6 billion in new distress The CRED iQ distress rate bottomed at 10.11% in April and rose for three consecutive months, reaching 10.78% in July. The special servicing rate followed the same pattern, climbing from 9.73% to 10.02% over that stretch, and the delinquency rate moved from 8.08% […]<\/p>\n","protected":false},"author":14,"featured_media":5446,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[2,9],"tags":[],"class_list":["post-5445","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-research"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/5445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/comments?post=5445"}],"version-history":[{"count":3,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/5445\/revisions"}],"predecessor-version":[{"id":5449,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/5445\/revisions\/5449"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/media\/5446"}],"wp:attachment":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/media?parent=5445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/categories?post=5445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/tags?post=5445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}