Office and retail valuation drops are becoming like accident scenes, where so many watch and find it hard to turn away. Trepp recently reported that January valuations for CMBS-office backed loans were 52% to 60%.
CRED iQ reviewed 190 appraisals of major properties across all assets classes to determine the impact of current market conditions on asset values. Retail and office led the declines, with an average 41.2% valuation decline in $10 billion in assets. Retail was down 57% while office was on its heels at 48.7%.
Other drops were 41.9% in mixed-use, 22.0% in multifamily, and 21.2% for industrial. The only good news in valuation was self-storage, which remained flat with no decline.
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