This press release was orginally distributed by ReleaseWire
Austin, TX -- (ReleaseWire) -- 03/02/2023 -- MyEListing.com, a free-to-use commercial real estate data and listings platform, recently published a report outlining five US cities that will be the most vulnerable to commercial real estate (CRE) loan defaults in 2023.
The five cities outlined in the report are Las Vegas, NV; New York, NY; Houston, TX; Miami, FL; and San Francisco, CA. While each struggles with its own unique economic forces, the macroeconomic effects of the COVID-19 pandemic are largely to blame for the higher default risks.
"The COVID-19 epidemic has impacted all five cities," says the report, "resulting in numerous job losses, company closures, and decreased consumer spending."
On the microeconomic side, Vegas faces increased default risk thanks to its sluggish conventional business activity, which still remains below pre-pandemic levels, and its still-recovering tourism industry.
New York City's declining office demand and its steadily rising costs of living contribute to its own default risks, while the political climates of both Houston and Miami, coupled with pandemic-related business closures and relocations, are leaving indebted property owners in a pinch.
San Francisco's high taxes, physical decay, and severely battered office market continue to headwind the city's commercial rent income.
"Each of these five locations now faces a higher risk of commercial real estate loan defaults as a result of a variety of variables than in years past," says the report. "It is, however, crucial to keep in mind that the pandemic has significantly increased economic uncertainty throughout the US, meaning that borrowers in any city could have trouble repaying their loans; these five simply have greater risk to the same set of possibilities."
MyEListing.com is a national commercial real estate marketplace and data platform connecting real estate professionals and others from all corners of the industry. Users can sign up for free and access accurate local market intelligence, comp software, and more. The platform also supports other players in the industry, including NAI Global, Colliers, and Cushman & Wakefield.
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