In this report, Trepp and CompStak examined the office sector looking at leasing trends in 11 metropolitan statistical areas (MSAs) with sizable near-term loan maturities in 2023 and 2024.
NEW YORK, Feb. 2, 2023 /PRNewswire-PRWeb/ -- Trepp, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, and CompStak, the nationwide data provider of commercial real estate lease comps, sales comps, and property information, released a report today which found there are sizable lease expirations coming for maturing office loans.
In this report, Trepp and CompStak examined the office sector looking at leasing trends in 11 metropolitan statistical areas (MSAs) with sizable near-term loan maturities in 2023 and 2024. Instantly access the report here to see the findings: https://www.trepp.com/trepp-compstak-office-research-report-february-2023
A total of $40.47 billion is scheduled to mature by the end of 2024, consisting of 353 loans backed by 583 office properties. At least one of the top five largest tenants at these properties has a lease expiration within the next two years. In analyzing lease expirations for each building's top five tenants, a total of 38,500 square feet is set to expire within two years on average.
"Loans or markets that look healthy in terms of cashflow could find themselves with mounting stress if tenants reduce their footprint, as has been the case with older, Class-B properties. These tenants move to newer, amenity-rich, class-A space and all parties involved are at risk," said Stephen Buschbom, report co-author and Trepp's Director of Research.
A subset of loans that are a greater concern are the fixed-rate loans maturing in 2023 that account for $6.25 billion (15%) of the two-year office maturity scheduled for the 11 MSAs highlighted in the report. These loans are maturing at what could end up being the peak of the Fed's current tightening cycle.
"The report also found that property owners are facing flattening rent growth, especially for older Class A and B properties at the same time as concessions, other costs, and expenses are rising," said Alie Baumann, report co-author and CompStak's Director, Real Estate Intelligence.
Following the integration of CompStak data within the Trepp product suite, joint Trepp and CompStak clients can view property and space level leases within Trepp's TreppLoan application. Details such as in-place rents, lease dates, rent escalations, free rent, and other concessions are provided by CompStak and can be accessed by Trepp clients. Learn more about the integration by contacting [email protected].
To access the complete report by Trepp and CompStak that highlights upcoming office loan maturities, large lease expirations, and anemic space demand, click here: https://www.trepp.com/trepp-compstak-office-research-report-february-2023
Trepp, founded in 1979, is the 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, Dallas, 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).
CompStak is a real estate data and analytics company leveraging crowdsourced commercial lease and sale transaction data and property information combined with AI-driven analytics. CompStak's 30,000 members provide data covering the entire US, and its paying customers include the world's largest real estate investors and lenders like Wells Fargo, Tishman Speyer, AEW, CIM, Moody's, and many more. For more information, visit http://www.compstak.com.
Trepp Media Contact
CompStak Media Contact
Riley Cox, Trepp Inc., 2127541010, [email protected]
SOURCE Trepp Inc.