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Retail rents fell in 2017 -- a lot. Average aggregate asking rents shrank 18.4% across the 16 main retail corridors in 2017 in Manhattan compared to 2016, , according to new research from CBRE. “While there may be more rent adjustment ahead, the biggest strides seem to be behind us," said Nicole LaRusso for CBRE.

December 9, 2020 Comments Off on Trepp, CompStak See Rising Distress in Manhattan Retail Views: 697 New York News, Top New York

Trepp, CompStak See Rising Distress in Manhattan Retail

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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.

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