Yardi Matrix Special Report: Distressed Commercial Real Estate Opportunities Yet to Surface

While investors are hungry to snap up distressed assets, an analysis of loan delinquencies and development plans shows limited fallout so far

SANTA BARBARA, Calif.,
August 20, 2020 – Investors
hungry for pandemic-prompted opportunities in the commercial real estate realm
may be waiting awhile. In a newly released special report, Yardi® Matrix
analyzed the national picture for distressed commercial real estate
opportunities, and found that with a few regional exceptions, the CRE market is
holding up well.

This
special report dissects the performance of 9.3 million multifamily
units and 94 million square feet of office space in the Yardi Matrix database.

“What we found is that there seems to be relatively few
multifamily and office properties that are in danger of immediate default, but
there are pockets of weakness that could eventually produce trouble,” states
the report.

Some of the markets that appear to be in a weaker
position so far include markets in the south and east including Dallas, Austin,
Atlanta, Houston and Miami, where significant new development and surging COVID-19
cases are in play. These cities seem most likely to see distressed sales in the
future.

“However, nationally the balance of new builds seem to be
leasing up well, stabilized properties are maintaining decent occupancy, and
loan maturities do not appear to be threatening large percentages of the
multifamily and office sectors,” it summarizes. The office sector, however, may
face the toughest road ahead of all commercial assets. More than 140 million
square feet of office properties are under construction in the U.S., with an
estimated 76 million square feet to be delivered in 2020. 

“Since companies are not expanding while many employees
work remotely through at least the end of the year, many corporations are
rethinking how much space they need going forward, making lease-ups that much
harder,” states the report.

Gain all the in-depth
analysis in this special
commercial real estate report from industry data leader Yardi Matrix.

Yardi Matrix offers the industry’s
most comprehensive market intelligence tool for investment professionals, equity
investors, lenders and property managers who underwrite and manage investments
in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial,
office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi^® develops and
supports industry-leading investment and property management software for all
types and sizes of real estate companies. Established in 1984, Yardi is based
in Santa Barbara, Calif., and serves clients worldwide. For more information on
how Yardi is Energized for Tomorrow, visit yardi.com.