New Trepp Report Examines the Parallels of the Retail and Office Commercial Real Estate Sectors | News
NEW YORK, December 28, 2021 / PRNewswire-PRWeb / – Trepp, a leading provider of data, intelligence and technology solutions to the structured finance, commercial real estate (CRE) and banking markets, released a report exploring the parallels between retail and office real estate markets. The report can be accessed here: https://www.trepp.com/december-2021-office-report-pr
Everyone knows the saying “In hindsight is 20/20”, but what does that mean for commercial real estate? Looking back, Trepp compared the decline of the regional and national mall with another commercial property asset class, the office.
Trepp is currently tracking approximately $ 53.3 billion in regional and national mall loans in the US From the $ 53.3 billion, $ 35.9 billion consists of interest-free full-term loans. Trepp also tracks roughly $ 184.5 billion for office loans, $ 130.7 billion of which interest is only paid for the full term.
From a structural point of view, at least from a structural point of view, the data suggest that office properties are largely financed in the same way as regional and supraregional malls. The report assesses whether office real estate and credit could share the same fate as retail.
“A large percentage of the shopping center and office loans are funded in the same way. This funding structure is key to Looking Back’s 20/20 concept,” said Lonnie Hendry, “Trepps Head of Advisory Services.” We saw how many of these malls went into REO or foreclosure status. We do not predict the same fate for all office loans financed in this way, but it is worthwhile to see whether some office properties will suffer the same fate. “
In Trepp’s analysis, the parallels in credit structure stood out as one of the observable aspects. The office sector was examined because of the similarities in the financing of these loans compared to regional and supraregional shopping centers.
To access the full report, including an overview of the similarities between retail and office credit structures, office occupancy versus retail visitors, upcoming due dates, revenue per square foot, and more, click here: https://www.trepp.com/december- 2021-office-report-pr
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About stairs
Founded in 1979, Trepp is a leading provider of data, intelligence and technology solutions to the structured finance, commercial real estate and banking markets. Trepp offers primary and secondary market participants the solutions and analyzes they need to increase operational efficiency, information transparency and investment performance. From his offices in new York, San Francisco, and London, Trepp supports its customers with products and services to support trading, research, risk management, monitoring and portfolio management. The Trepp subsidiary Commercial Real Estate Direct is a daily news source for the capital market for commercial real estate. Trepp is wholly owned by the Daily Mail and General Trust (DMGT).
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Hayley Keen, Trepp, Inc., 212751010, [email protected]
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