Trepp Ranks the Top Secondary Metro Areas for Commercial Real Estate Investment
Trepp analyzed the performance of 21 statistical secondary metropolitan areas (MSAs) to compile a list of the top 10 areas for commercial real estate investment.
NEW YORK, August 5, 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 the latest research that ranks key secondary metropolitan areas for commercial real estate investment. Get the full report right here: https://www.trepp.com/ranking-secondary-msa-cre-august-2021-trepp-report-pr.
While the initial impact of the pandemic was particularly severe in high-profile metropolitan areas, many secondary markets saw a similar fate. But how have the regions recovered since then? In this report, Trepp analyzed the performance of 21 secondary metropolitan statistical regions (MSAs) and compiled a list of the top 10 areas for commercial real estate investment.
“This year the first effects of COVID-19 were incredibly present in the data. Instead of ignoring the widespread downturns or weighing the extraordinary event as the be-all and end-all of commercial real estate investment potential, we used staircase data to provide a holistic view of the metropolitan areas, “said Maximilian Nelson, Report author and Trepp Research Analyst.
San Jose–Sun Valley–Santa Clara, California. 1st place in Trep’s report, before the Las Vegas and Sacramento MSAs. The three metropolitan areas topped the list after achieving high rankings in both historical and current categories. In particular, these regions all had high outstanding volume growth (OVG%) from 2017, while also reporting low defaults and special service rates and strong weighted average debt service coverage (DSCR).
Trepp requested seven data variables to complete the ranking, each given an equal weighting. In addition to key data such as employment figures and population growth, Trepp used the following criteria from its own commercial loan database for the ranking:
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‣ New CMBS issue in the region
‣ The average debt service coverage ratio (DSCR) weighted by the outstanding balance of each loan.
‣ The percentage of overdue loans and loans in the special service
‣ And more.
For the full metropolitan list and statistics, you can download Trepp’s report right away here: https://www.trepp.com/ranking-secondary-msa-cre-august-2021-trepp-report-pr. For daily updates and news on commercial real estate, follow @TreppWire on Twitter.
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 commercial real estate capital market. Trepp is wholly owned by the Daily Mail and General Trust (DMGT).
Media contact
Hayley Keen, Trepp, LLC, 2127541010, [email protected]
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