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Seattle, San Jose, Orlando Top Secondary Metros for CRE Investment
The Seattle-Tacoma-Bellevue, WA MSA ranks first in the 2022 edition of Trepp’s annual ranking of the top 10 secondary metro areas for commercial real estate investment. The Seattle MSA ranks ahead of the San Jose-Sunnyvale-Santa Clara, CA and Orlando-Kissimmee-Sanford, FL MSAs.
All three metro areas benefited from investment profiles with strong weighted average debt service coverage ratios, high outstanding volume growth since 2020, and low distress rates–I.e. delinquency and special servicing rates—despite economic uncertainty.
“This year, the findings were heavily made up of the MSAs that have found a way to heal from old distress and manage new economic outcomes,” said Maximillian Nelson, Trepp research analyst and author of the report. “A common theme in these MSAs was low CRE distress and low unemployment levels—pointing to areas that have been able to make up ground on their pandemic losses while also maintaining through this economic cycle.”
- ◦Sale/Acquisition
- ◦Economy
