After a tough first half of the year for valuations, particularly among specially serviced properties, the third quarter of 2023 continued apace, according to a new report from CRED IQ.

As a reminder, the first half of 2023 was bad. 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.

Now on to Q3. This time, CRED iQ looked at 480 properties that had repeat appraisals in 2023. The top 25 valuation drops got another reappraisal in the third quarter. Each property was either with a special servicer already or were delinquent.