PHOENIX-RealCapital Analytics' report for the first half of the year shows a dwindling amount of distressed assets on the books.
Dan Fasulo with RCA tells GlobeSt.com that the Phoenix region has experienced $20.5 billion worth of distressed commercial property since 2008. To date, 62% of that distress ($12.7 billion) has been worked out through sale or recapitalization. During the first half of 2013, workouts of distress topped new inflows by more than 3:1.
Meanwhile, in the remainder of the southwest:
- Dallas has experienced $11.8 billion in debt since 2008, coming in second to Phoenix. Since that time, 70% of the distress has been worked through.
- Houston and Austin have experienced $9 billion and $3.5 billion worth of distressed commercial property during the same period of time. Faustino says Austin experienced no new distress during the first half of 2013.
Nationally, the report points out that lenders are making progress in reducing distressed balances -- $18.6 billion was resolved nationally during the first half of 2013. Overall, new instances of distress continue to fall – nationally, the amount in Q2 totaled $3.1 billion, the lowest since Q3 2007.
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