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Trepp Ranks the Top Secondary Metro Areas for Commercial Real Estate Investment

·3 min read

Trepp analyzed the performance of 21 secondary metropolitan statistical areas (MSAs) to create a list of the top 10 areas for commercial real estate investment.

NEW YORK, Aug. 5, 2021 /PRNewswire-PRWeb/ -- Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets released the latest research report ranking the top secondary metro areas for CRE investment. Instantly access the complete report here: https://www.trepp.com/ranking-secondary-msa-cre-august-2021-trepp-report-pr.

While the initial impact of the pandemic was especially severe in top-tier metropolitan areas, many secondary markets saw a similar fate. But how have the regions recovered since then? In this report, Trepp analyzed the performance of 21 secondary metropolitan statistical areas (MSAs), creating a list of the top 10 areas for CRE investment.

"This year, the initial impacts of COVID-19 were incredibly present in the data. Rather than ignoring the widespread downturns or weighing the extraordinary event as the end-all, be-all for CRE investment potential, we used Trepp data to create a holistic view of the metro areas," said Maximillian Nelson, report author and Trepp Research Analyst.

San Jose-Sunnyvale-Santa Clara, CA ranked first in Trepp's report, ahead of the Las Vegas and Sacramento MSAs. The three metro areas topped the list after placing highly in both historical and present categories. Specifically, these regions all had high levels of Outstanding Volume Growth (OVG %) dating back to 2017, while also reporting low delinquency and special servicing rates along with strong weighted average debt-service coverage ratios (DSCR).

Trepp called upon seven data variables to complete the rankings, giving each an equal weighting. In addition to key data such as employment numbers and population growth, Trepp used the following criteria from their own commercial loan database to tabulate their rankings:

‣ New CMBS issuance in the region
‣ The average debt service coverage ratio (DSCR) level weighted by each loan's outstanding balance.
‣ The percentage of delinquent loans and loans in special servicing
‣ And more.

For the complete list of metro areas and corresponding statistics, instantly download Trepp's report here: https://www.trepp.com/ranking-secondary-msa-cre-august-2021-trepp-report-pr. For daily commercial real estate updates and news, follow @TreppWire on Twitter.

About Trepp

Trepp, founded in 1979, is a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT).

Media Contact

Hayley Keen, Trepp, LLC, 2127541010, press@trepp.com

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SOURCE Trepp, LLC