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Hurricane Harvey CMBS Exposure $30B
There is nearly $30 billion in CMBS exposure in areas affected by Hurricane Harvey, according to a report by Trepp. Researchers cast a wide net and looked at properties in 54 disaster-area counties identified by the office of Texas Governor Greg Abbott.
What they found was a list of potential problems that includes more than 2,200 loans with a total balance of roughly $29.6 billion. That excludes major portfolio loans, since exposure was limited, and in the past hurricanes haven’t been a major disruptive issue for CMBS. Typically, properties were sufficiently insured and the commercial loan toll has been limited compared to the human toll.
Houston could be different, since it has some large area offices facing major lease expirations. If properties can’t be toured for an extended period of time because they are being renovated, it could cause difficulties releasing the space.
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- ◦Financing
