Trepp analyzes Q3 2023 bank CRE loan performance, findings reveal office charge-offs & delinquencies pair with steep declines in occupancy & originations.
NEW YORK, Dec. 15, 2023 /PRNewswire-PRWeb/ -- Trepp, a leading provider of data, insights, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets, has released the Q3 2023 Bank CRE Loan Performance report, using analysis from Trepp's Anonymized Loan-Level Repository (T-ALLR) data set. Instantly access the report here: https://www.trepp.com/instantly-access-q3-2023-tallr-report
The report reveals a decrease in commercial mortgage origination volumes for bank-held commercial real estate loans in the third quarter of 2023. Net charge-offs, delinquency and occupancy rates reflect increased stress in CRE lending.
"Commercial mortgage origination volumes for bank-held commercial real estate (CRE) loans fell dramatically in the third quarter, with the office sector showing the lowest origination volume in Q3 relative to the pre-Covid 2019 average quarterly origination volume for the sector," said Emily Yue, Research Analyst at Trepp. "Furthermore, the mortgage underwriting terms for any new originations in the third quarter show greater weakness relative to originations made in prior quarters."
While the lodging and retail sectors have seen some positive signs in the past few quarters regarding delinquencies, the office sector rates continue to rise. The overall delinquency rate experienced a sharp rise, surging from 1.2% in the previous quarter to 1.5%.
The analysis is mainly built on the examination of trends in Trepp's Anonymized Loan-Level Repository (T-ALLR) data set. The T-ALLR data is comprised of bank balance sheet loan data, a diverse set of loans totaling about $160 billion sourced from multiple banks.
For more information, and to see the complete report including data on delinquent and noncurrent loans, distress rates by property type, criticized loans by region, and commercial mortgage origination volume, click here: https://www.trepp.com/instantly-access-q3-2023-tallr-report
Contact Trepp at [email protected] or 212.754.1010 and visit http://www.trepp.com for more information.
About T-ALLR
The Trepp Anonymized Loan Level Repository (T-ALLR) provides banks with loan-level anonymized and summary data for CCAR, DFAST, and other PD, LGD, and benchmarking model development. The T-ALLR Data Feed is derived from data that is contributed by participant banks.
About Trepp
Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to 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, Dallas, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management.
Media Contact
Ennys Soydas, Trepp Inc., 2127541010, [email protected], www.trepp.com
SOURCE Trepp Inc.
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