Delinquency and special servicing rates for retail CMBS loans in Manhattan are at an all-time high, according to a new report from Trepp x Compstak. Delinquency rates hit 16.68% in August, and special servicing rates increased to 17.55%.

Before the pandemic, retail delinquency and special servicing rates were low, at 2.38% and 8.41% in February, respectively, and previous historical peak levels were 3.71% and 4.39%, respectively.

The distress of the market segment illustrates the impact of forced retail closures and limited federal support this year. Notably, occupancy levels have not significantly decreased during the pandemic. Manhattan retail loan occupancy rates decreased from 98.7% in February to 94.9% in November. Overall, retail occupancy declined nominally from 93.9% to 93.2% over the same time period.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.