The pressures being exerted on Manhattan retail by the COVID-19 pandemic are manifesting in securitizations backed by retail properties, say Trepp and CompStak in a new report.
“Signs of increased distress have been reflected in CMBS loans backed by Manhattan retail through rising delinquencies, reduced occupancy rates, and lower appraised value assignments, making this a segment that warrants close monitoring,” said Catherine Liu, report co-author and Trepp associate manager of research.
Overall, retail properties in Manhattan serve as collateral for 130 CMBS loans with an outstanding balance of $5 billion.
Distress rates for retail CMBS loans secured by Manhattan retail have climbed notably since the start of the coronavirus pandemic in March, Trepp and CompStak reported.
Delinquency and special servicing rates for Manhattan retail climbed to an all-time high of 16.78% and 17.55% in August, respectively, as compared to historical peak levels of 3.71% and 4.39% prior to this year.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
Email the Author
Reach over 250,000 Commercial Real Estate Professionals with Connect
Connect CRE reaches the top commercial real estate players nationwide and across all property types, offering you a variety of ways to showcase your team, your expertise and your brand to CRE decision makers.
The home for CRE news and everything you need to stay informed on deals, trends, and transactions, providing a platform to get your brand in front of your target audience.
Daily CRE Emails
Reaching over 150,000 inboxes across the nation every day, Connect’s Daily News emails provide advertising opportunities specific to your market.
Bi-Weekly Property Sector Emails
Focus your advertising on emails dedicated to your property sector and stay visible to current and potential clients.
Position your team as experts in your field with content created by Connect’s editorial team and published on Connect’s news emails. Showcase your intelligence and broaden your reach.