However, RCA ranks the outer boroughs and Long Island in fifth place among US markets in distress measured as a percentage of total property investment volume. Notwithstanding Manhattan's high dollar volume for distressed assets--slightly less than $8 billion--it's ranked in 32nd place among metro areas, due to the sheer density of the market.

As might be expected, Vegas vaults to the top of that list, followed by Detroit. For that matter, Manhattan comes in well below Southeastern tertiary markets in the rankings, although the dollar volumes for distress in Manhattan and outlying Southeastern markets are within a few million dollars of one another. However, it ranks higher than Los Angeles--36th place, despite the nation's second largest city having the largest number of distressed assets--263, compared to Manhattan's 120.

In terms of property type, Manhattan ranks fourth nationally in dollar volume of office and apartment distress, with volumes of about $4.9 billion and $2.2 billion, respectively. These two sectors also comprise the lion's share of distressed properties in Manhattan, with 24 office buildings and 82 apartment assets either in default, foreclosure or bankruptcy, RCA says. The Manhattan market is further down the rankings for hotel distress, where it's in 19th place, and industrial, for which it ranks 27th.