Delinquency and special servicing rates for retail CMBS loans in Manhattan are at an all-time high, according to a new report from Trepp x Compstak. Delinquency rates hit 16.68% in August, and special servicing rates increased to 17.55%.
Before the pandemic, retail delinquency and special servicing rates were low, at 2.38% and 8.41% in February, respectively, and previous historical peak levels were 3.71% and 4.39%, respectively.
The distress of the market segment illustrates the impact of forced retail closures and limited federal support this year. Notably, occupancy levels have not significantly decreased during the pandemic. Manhattan retail loan occupancy rates decreased from 98.7% in February to 94.9% in November. Overall, retail occupancy declined nominally from 93.9% to 93.2% over the same time period.
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Kelsi Maree Borland
