Trepp: Quarterly Data Review – 3Q 2022

The recent release of the Fall 2022 issue of the Quarterly Data Review by Trepp and Commercial Real Estate Direct provides insight into several areas related to and impacting the commercial mortgage-backed securities (CMBS) market. A “choppy” 3rd quarter highlighted by inflation, rising U.S. Treasury rates, and a U.K. budget proposal that called for unfunded tax cuts, leaves uncertainty for the economy and commercial real estate. Other key takeaways reveal that CMBS issuance in the 3rd quarter fell sharply by 35% to $13.3 billion, with total issuance of $63.28 billion from January through September representing a 6.7% year-over-year lowering in volume. CMBS special servicing volume increased for the second consecutive month, reaching $30.33 billion — of which retail properties accounted for nearly 45%, but overall volume remains nearly 43% less than the $52.95 billion at the end of 2020. In contrast, CMBS delinquency volume declined to $17.86 billion in September, nearly 38% less year-over-year, with retail and hotel properties accounting for the highest delinquency volume.