By Sean Barrie | Trepp
Much like last year, the retail sector generated a large number of headlines in 2018. However, the multifamily space was the subject of Trepp’s most-read research piece from this year. This isn’t much of a surprise for us as more issuance is being devoted to apartments (whether it be from private-label and agency lenders) and the sector’s delinquency rate maintained its healthy figure.
Click below to download the year’s most popular pieces, including reports on new issuance, secondary MSAs, and CECL for CMBS.
10. Increased Competition May Begin to Weigh on Hotel Loan Performance (March 2018)
According to Trepp’s commercial real estate data, hotel loans continue to perform well. That’s good news, considering the rapid growth in hotel room supply in recent years. However, the largest annual volume of new supply since 2009 is expected to come online this year. That increase – along with disruption from Airbnb – could pressure future occupancy growth.
9. CRE Loan Scorecard: How Much Return Are Lenders Requiring for New Issuance?(September 2018)
Inflation and rising interest rates have been the watchwords for investors over the past several months, and short-term rate increases on longer-term rates will have a pretty significant effect on CRE loan spreads and values. We have compiled an analysis of recently issued loans so we can highlight where loans are pricing and how much return lenders are requiring for a given level of risk.
Although recent media attention has focused heavily on negative retail narratives, financial metrics across retail properties in CMBS have reported persistent growth since 2011. Trepp examined its database of year-end financials reported on nearly 35,000 retail loans to illustrate which US regions and retail subtypes have led the way in terms of underlying financial growth and performance.
7. How Much Tighter Is CMBS Underwriting Under Risk Retention? (April 2018)
Ever since the Dodd-Frank risk retention requirements came into effect in December 2016, the CMBS sector has placed a stronger emphasis on underwriting standards. Although new deals typically feature less leverage and higher DSCR levels, are more transactions being “barbelled” with loans of differing credit quality?
6. Reassessing CECL Losses for CMBS (April 2018)
With the Wall of Maturities now in the market’s rear-view mirror, Trepp ran the entire CMBS loan universe through the Trepp Default Model to get a sense of the magnitude of prospective CECL loss calculations. We break down our results by loan vintage, DSCR and LTV, and region.
5. The Top 20 Secondary MSAs for CRE Investment (August 2018)
With CRE values in top-tier markets at all-time highs, it has become difficult for investors to find suitable returns in gateway cities. Using Trepp data and US economic stats, we have created a ranking of the top 20 secondary markets in the US to highlight which metros are ripe for CRE investment opportunity.
4. CRE Loan Scorecard: Spreads on New Deals Compress (October 2018)
Towards the end of September, Federal Reserve Chairman Jerome Powell confirmed the Fed’s decision to raise short-term interest rates. US 10-year Treasury yields have climbed since the beginning of September, which could be a reason for the loan spread compression we’ve observed.
3. Retail Round-up: The 13 Biggest Headlines from Q1 (May 2018)
Investors closely monitoring the retail industry over the last three months digested a slew of headlines from retailers active in the grocery and women’s apparel/ accessories segments. The period between February and April 2018 was particularly notable as a number of supermarket operators announced plans to either shutter stores, restructure existing loans, or sell off some of their current assets.
2. 2017 CMBS Award Winners (January 2018)
After tallying all of last year’s CMBS issuance stats, we’re happy to announce our award winners for 2017. In this research piece which originally ran in The Year-End 2017 from Commercial Real Estate Direct, we break down last year’s CMBS issuance by ranking the top bookrunners, loan contributors, and B-piece buyers.
1. Can Multifamily Sector Keep Up with Rising Demand? (January 2018)
Multifamily demand has risen to its highest level in more than 25 years thanks to demographic trends, population growth, and changing consumer preferences. Our multifamily snapshot looks at the sector’s performance, including delinquencies, losses, and maturing loans.
Compliments of Trepp, a member of the EACCNY