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 info@trepp.com.
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
About Trepp
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).
About CompStak
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
Riley Cox
riley_cox@trepp.com
CompStak Media Contact
Rotem Eshed
rotemeshed@compstak.com
Media Contact
Riley Cox, Trepp Inc.,
2127541010, press@trepp.com
Twitter
SOURCE Trepp Inc.