HOUSTON—The water levels are decreasing but in turn, damage levels are rising as the breadth of the storm is exposed. Morningstar Credit Ratings published an alert this week regarding the flooding in Texas. The fear is that 1,529 properties backing CMBS loans could be at risk.
Morningstar believes that these properties with an allocated property balance of $19.4 billion may be at an increased risk because of major flooding caused by Hurricane Harvey. These properties, backing 1,277 loans in CMBS, are in the 18 Texas counties that the Federal Emergency Management Agency/FEMA, declared major disaster areas. Most of the properties, with a balance of $16.24 billion, are in Harris County, which suffered catastrophic flooding, according to the New York Times.
Companies and property owners are slowly beginning to report on the extent of the property damage found at commercial structures. It is safe to say that no firm or person has gone through the ordeal and come out unscathed.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
