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Trepp, CompStak See Rising Distress in Manhattan Retail

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.

For comments, questions or concerns, please contact Paul Bubny

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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