Trepp Report Reveals the Full Accounting of COVID-19 Crisis Shows Extent of Pain for Hotels, Malls
To assess the impact of the coronavirus pandemic on commercial real estate property performance, Trepp examined servicer remittance on 13,215 CMBS loans for which fiscal year-end financials for both 2019 and 2020 were provided.
NEW YORK, July 14, 2021 /PRNewswire-PRWeb/ -- Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets, has released a report assessing the impact of the pandemic on CRE property performance, reviewing net operating income (NOI), net cash flow, expenses, and occupancy data. The report can be accessed here: https://www.trepp.com/full-accounting-of-covid-19-crisis-shows-extent-of-pain-for-hotels-malls-pr.
While there has been much discussion on the broad-ranging effect the coronavirus pandemic has had on global economies within such a short period, CRE market participants have been looking for meaningful data as a gauge of how much the pandemic had taken a toll on property financials in 2020.
Across the top five major property types and property subsectors, Trepp's findings on the magnitude of the impact of travel limitations, federally-imposed business closures, and other social mitigation public health policies on CRE and CMBS in 2020 were generally in line with broader market expectations.
"Consistent with the narratives surrounding the outsized disruption the pandemic had on lodging and retail, a more granular breakdown does indeed show that those two hardest-hit property types posted the largest annual declines for financial benchmarks across the board," said Catherine Liu, Associate Research Manager.
On average, overall NOI, revenue, and occupancy behind CMBS loans contracted by 10.3%, 6.9%, and 5.3%, respectively, between 2019 and 2020.
While all CRE sectors have arguably experienced some kind of long-term structural shift over the past year, delinquencies have remained modest for multifamily and office, the two property types that have been slower to show any signs of softening.
To see the complete year-over-year CMBS financial review of net operating income, cash flow, revenue, expense, and occupancy data analyzed by property type, ranked by city/state, and to see average occupancy levels across all major property types and MSAs, download the full report here: https://www.trepp.com/full-accounting-of-covid-19-crisis-shows-extent-of-pain-for-hotels-malls-pr.
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About Trepp
Trepp, founded in 1979, is a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).
Media Contact
Hayley Keen, Trepp LLC, 2127541010, [email protected]
SOURCE Trepp LLC
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