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Sign in Sign up for a FREE subscriptionTrepp ranks top secondary metro areas for CRE investment in 2022
Seattle-Tacoma-Bellevue ranked first in Trepp’s report for top secondary metro areas for commercial real estate investment. The area was ahead of the San Jose-Sunnyvale-Santa Clara, Calif., and Orlando-Kissimmee-Sanford, Fla.
The three MSAs benefited from having investment profiles that had strong weighted average debt service coverage ratios (DSCRs), high outstanding volume growth (OVG) since 2020, and low distress rates (delinquency and special servicing rates) despite economic uncertainty.
The bottom three rankings are Pittsburgh, Pa.; St. Louis; and Cleveland-Elyria, Ohio.
Trepp analyzed the performance of 24 secondary metropolitan statistical areas (MSAs) creating a list of the top 10 areas for investment. The year 2021 ended with level-breaking records of issuance in the commercial mortgage-backed securities (CMBS) market, and that pace looked to continue in 2022 as first-half issuance remained strong. However, macroeconomic factors like the war in Ukra
