⚠️Office Prices Crash as CMBS Crisis Escalates
Delinquency spikes bring Midtown’s office market to its knees.
Another $2 billion worth of office loans has landed in special servicing, and the situation is only getting worse.
Retail and hotel loans are seeing distress rates not seen in two years, and multifamily loans are hitting their highest special servicing rates in almost a decade.
In the same vein, a once prestigious NYC office building valued at $332 million has been sold for a shocking 97% less.
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The shift to remote work and the pandemic delivered a one-two punch that left the building practically worthless at just $9 million.
Attempts to bring tenants back fell flat, underscoring the broader struggles commercial real estate is facing right now.
If that wasn’t enough, Hurricane Helene has thrown $96 billion in residential mortgage-backed securities into delinquency, and Oakland's office vacancy rates are nearing 30%, adding to the gloom.
In this edition of the AltReports:
📉 Debt Dilemma
💸 Value Vanishes
🌪️ Hurricane Havoc
💢 Vacant Valleys
💼 Investor Exodus
Video of the Week: Learn How to Find and Purchase a Notice of Default
Chart of the Week: Office Distress Hits New Peak, Up 156% in Last 18 Months
Podcast of the Week: Cash Flow or Equity: Which One Should Beginners Invest for?
Another $2B Of Office Loans Hit Special Servicing As Rate Of Distress Mounts
Another $2B in Office Loans Circles the Drain as Distress Skyrockets
Special servicing rates are climbing for all five major property types like they're in some kind of awful race.
Retail and hotel loans are now rocking two-year highs at 11.2% and 7.8%, respectively.
Meanwhile, more than 6% of multifamily CMBS loans have hit special servicing, the highest rate in over nine years. Who needs stability anyway?
Sale of office building once worth $332M closes for 97% less
A once-glorious NYC office building, previously flaunting a $332 million price tag, just sold for a jaw-dropping 97% less—yep, a paltry $9 million.
RXR Realty’s 32-story structure at 1330 Sixth Avenue got walloped by the pandemic and the work-from-home shift, making it about as desirable as a flip phone in 2024.
Even desperate attempts to woo tenants couldn't save this sinking ship.
Hurricane Helene has exposed $96B in RMBS loans to delinquency
Hurricane Helene Smacks $96B in RMBS Loans Into Delinquency
Hurricane Helene didn’t just rattle a few windows; it torched the mortgage market, shoving $96 billion in residential mortgage-backed securities (RMBS) loans into delinquency.
This financial gut-punch has the sector sweating bullets over the stability of these assets.
Oakland's Office Vacancy Climbs Toward 30%
Oakland's office vacancy rates are climbing higher than a cat stuck in a tree, now approaching a mind-boggling 34.8%.
Thanks to Blue Shield of California and Sierra Club jumping ship, it’s looking more like a corporate ghost town.
If Oakland doesn’t pull a miracle with zoning law changes or sprinkle some magical incentives, these empty offices might soon be hosting ghost tours.
Florida Housing Market Buckles, Listing Prices Sag to 30-Month Low
The Florida housing market is crumbling like a sandcastle at high tide, with listing prices plunging to a 30-month low.
Investors, once snapping up homes like candy, are now running for the exits as profit margins evaporate.
This is a housing market in full-on choke mode.