City’s CMBS market least distresse

New York City now has the lowest level of overall distressed CMBS loans in the nation after surpassing Seattle for the first-place spot, according to a new report from CoStar Group, which examined data from Investcap Advisors and QuantumRisk. As of the end of July, both New York and Seattle had a probability of default ratios of less than 2 percent. New York was also among the least stressed office markets in the nation, with a ratio also below 2 percent for that segment of the real estate market. Meanwhile, Las Vegas, Phoenix, Orlando, Atlanta and Detroit got no such good news. As the top five markets with the highest overall probabilities of default — their ratios came in between 11 and 15 percent — the cities are also facing potential loss severities on CMBS loans of between 10 and 14 percent. TRD