Trepp ranks top 21 secondary metro areas
The Austin metropolitan statistical area (MSA) is the highest-ranked secondary MSA for its commercial real estate investment potential, according to Trepp.
Austin was ranked first due to the high rate of population growth, low unemployment rate and a continued increase in new CMBS issuance. It was followed by San Jose, which reported low CMBS delinquency rates, low lodging and retail exposure, and a high average occupancy rate and weighted average debt-service coverage ratio (DSCR).
“The impact of the pandemic has been especially severe in the top-tier metropolitan areas, many of which had completely shut down businesses,” said Jyoti Yadav, Trepp research analyst. “While most secondary markets also saw a similar fate, some have fared better than others.”
The two lowest-ranking secondary MSAs were Cleveland and Minneapolis. The delinquency rate and unemployment rates recorded significantly high in both cases, while also having very low weighted average DS