Commercial properties facing the biggest forms of distress have seen their valuations shaved considerably in the past year.
An analysis by The Business Journals found a net total of $6.89 billion in property value has been depleted across 460 properties that secure debt in commercial-mortgage backed securities loan portfolios since August 2021. Fifty-five properties did see an increase in value at reappraisal, although the majority reappraised at less than $1 million higher from when the current loan was initially issued on the property.
Since the start of the Covid-19 pandemic in March 2020, at least $8.53 billion in property value loss has been recorded among 652 properties in CMBS portfolios. A similar analysis conducted by this publication in February found a collective reduction of $9.03 billion in value among 719 commercial properties reappraised since Covid-19, but that included a wider net of properties.
