The topic of distressed properties as a potential investment target has been prevalent over the past several months, but sales data suggests distress isn't yet as widespread as many think.

According to an analysis by Colliers director of research for U.S. Capital Markets Aaron Jodka, distress sales have averaged $2.1 billion per quarter since the beginning of 2023. This is below the quarterly average of $2.2 billion from 2017 to 2019 and is much lower than the amount that occurred during the Global Financial Crisis of 2008.

"Based on this metric, distress isn't widespread; it's normal," said Jodka, noting distress has been limited since the pandemic began. "However, it is on the rise, with newly troubled loans running at a pace 5x pre-pandemic."