Trepp Ranks the Top 20 CMBS Markets for Growth and Investment

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Trepp has released new research on the top markets for economic growth and CMBS investment, citing CMBS issuance, employment figures, and property fundamentals as key criteria.

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As property investors increasingly focus on fast-growing '18-hour' cities, both major and secondary markets are experiencing accelerated growth rates.

Trepp, LLC, the leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has published new research on the top 20 US markets in terms of economic growth and CMBS investment. The report can be found here: http://info.trepp.com/top-20-cmbs-markets-june-2017-press-release.

Based on a multitude of economic and commercial real estate data used to formulate the overall ranking, the Seattle, Washington MSA topped Trepp’s list of CMBS markets for growth and investment. Seattle was the only market to finish in the top 10 for all of the categories Trepp measured to compile its ranking. The Las Vegas market came in second after Seattle, and the Atlanta MSA finished in third.

"As property investors increasingly focus on fast-growing '18-hour' cities, both major and secondary markets are experiencing accelerated growth rates," said Manus Clancy, Senior Managing Director at Trepp. “As a result, CMBS deals feature a growing volume of loans against properties in those markets.”

Trepp called upon nine factors to rank these markets. The criteria measure absolute growth and relative growth, and each factor was given equal weighting. In addition to key data such as employment numbers and population growth, Trepp used the following CMBS criteria from their own database to tabulate their rankings:

  • Newly issued CMBS loans from the last 12 months compared to the 12 months prior
  • The percentage of delinquent loans measured in April 2017 against April 2016
  • NOI growth from the prior to most recent full fiscal year averaged across the five major property types

Trepp compiled this research to measure the shift of capital to alternative US markets. Trepp data reflect this change, as more major and secondary markets feature high growth percentages in private-label CMBS issuance, instead of the typical top-tier metros like New York and Los Angeles.

For additional details, such as complete market rankings and corresponding statistics, download Trepp’s research on the Top 20 CMBS Markets for Growth and Investment: http://info.trepp.com/top-20-cmbs-markets-june-2017-press-release. For daily CMBS commentary, follow @TreppWire on Twitter.

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Sean Barrie
Trepp
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