Yardi Matrix Special Report: Distressed Commercial Real Estate Opportunities Yet to Surface


While investors are hungry to snap up distressed assets, an analysis of loan delinquencies and development plans shows limited fallout so far

SANTA BARBARA, Calif., August 20, 2020 – Investors hungry for pandemic-prompted opportunities in the commercial real estate realm may be waiting awhile. In a newly released special report, Yardi® Matrix analyzed the national picture for distressed commercial real estate opportunities, and found that with a few regional exceptions, the CRE market is holding up well.

This special report dissects the performance of 9.3 million multifamily units and 94 million square feet of office space in the Yardi Matrix database.

“What we found is that there seems to be relatively few multifamily and office properties that are in danger of immediate default, but there are pockets of weakness that could eventually produce trouble,” states the report.

Some of the markets that appear to be in a weaker position so far include markets in the south and east including Dallas, Austin, Atlanta, Houston and Miami, where significant new development and surging COVID-19 cases are in play. These cities seem most likely to see distressed sales in the future.

“However, nationally the balance of new builds seem to be leasing up well, stabilized properties are maintaining decent occupancy, and loan maturities do not appear to be threatening large percentages of the multifamily and office sectors,” it summarizes. The office sector, however, may face the toughest road ahead of all commercial assets. More than 140 million square feet of office properties are under construction in the U.S., with an estimated 76 million square feet to be delivered in 2020. 

“Since companies are not expanding while many employees work remotely through at least the end of the year, many corporations are rethinking how much space they need going forward, making lease-ups that much harder,” states the report.

Gain all the in-depth analysis in this special commercial real estate report from industry data leader Yardi Matrix.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.