Increasing number of healthy NYC buildings land in special servicing
Briefly

Despite maintaining low vacancy rates, many office properties backed by CMBS loans are struggling to avoid distress as economic conditions fluctuate. Around 100 properties, or 5% of those studied, are experiencing financial issues, primarily due to falling valuations and the challenges posed by rising interest rates when refinancing loans. Industry experts note that this situation is unusual for otherwise healthy properties, once again highlighting the impacts of the pandemic's long-lasting effects on the office sector.
Even buildings with low vacancy rates and steady rental incomes are feeling the sting of a fickle economy.
If a property is performing in terms of occupancy and rent collection, then normally this is not an issue.
Read at The Real Deal
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