NEW YORK, Dec. 28, 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 examining the parallels in the retail and office commercial real estate markets. The report can be accessed here: https://www.trepp.com/december-2021-office-report-pr
Everyone knows the saying, "hindsight is 20/20," but what does this mean for commercial real estate? With hindsight in mind, Trepp compared the demise of the regional and superregional mall to another commercial real estate asset class, office.
Trepp is currently tracking approximately $53.3 billion in regional and superregional mall loans in the U.S. Of the $53.3 billion, $35.9 billion is comprised of full-term interest-only loans. Trepp also tracks approximately $184.5 billion in office loans, $130.7 billion of which are full-term interest-only.
The data would suggest, at least from a structural perspective, that office properties have been financed largely in the same way as regional and superregional malls. The report assesses if office properties and loans could see the same fate as retail.
"A large percentage of both mall and office loans are financed the same way. This financing structure is the key to the hindsight is 20/20 concept, said Lonnie Hendry," Trepp's Head of Advisory Services. "We've seen many of these mall properties go into REO or foreclosure status. While we aren't predicting the same fate for all office loans financed this way, it does bear following whether some office assets will see the same fate."
In Trepp's analysis, the parallels in loan structure stood out as an aspect to watch. The office sector was reviewed because of the similarities in how those loans are financed relative to regional and superregional malls.
To access the full report, including an overview of the similarities between retail and office loan structures, office occupancy compared with retail foot traffic, upcoming maturities, revenue per square foot, and more, click here: https://www.trepp.com/december-2021-office-report-pr
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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).
Hayley Keen, Trepp, Inc., 212751010, [email protected]
SOURCE Trepp, Inc.