San Jose ranked first in Trepp’s report on secondary markets for CMBS investment, ahead of Las Vegas and Sacramento.
The three metro areas topped the list after placing highly in both historical and present categories. Specifically, the three regions all had high levels of outstanding volume growth (OVG) dating back to 2017, while also reporting low delinquency and special servicing rates along with strong weighted average debt-service coverage ratios (DSCR).
The bottom of the rankings was rounded out by Cleveland, Ohio; Portland, Ore.; and St. Louis, Mo. Cleveland has seen comparatively little OVG over the past five years, while also still reeling from the effects of the pandemic. After a tumultuous year, Portland fell nine spots from last year’s ranking while combating a high unemployment rate and struggling loans backed by collateral in the area. St. Louis similarly has struggled to attract CMBS investment, while also seeing low population growth.
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