Despite signs of improvement in commercial real estate markets, including the office sector, distress remains prevalent in many metropolitan areas. CRED iQ analyzed the top 50 metropolitan statistical areas, focusing on the loans they track to determine the proportion of distressed loans. The distress rate is defined as the combined percentage of delinquent and specially serviced loans.
The 13 highest distress levels comprise all the metros with at least a 20% rate.
They are Minneapolis-St. Paul-Bloomington, MN-WI (49.7%); Providence-New Bedford-Fall River, RI-MA (45.4%); Rochester, NY (35.7%); Portland-Vancouver-Beaverton, OR-WA (32.9%); Chicago-Napeville-Joliet, IL-IN-WI (28.9%); Hartford-West Hartford-East Hartford, CT (28.6%); Denver-Aurora, CO (25.8%); San Francisco-Oakland-Fremont, CA (23.1%); Milwaukee-Waukesha-West Allis, WI (23.0%); Cleveland-Elyria-Mentor, OH (22.9%); Tucson, AZ (22.6%); Charlotte-Gastonia-Concord, NC-SC (21.9%); and Philadelphia-Camden-Wilmington, PA-NJ-DE-MD (20.1%).
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