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CoStar: Florida second in distressed commercial properties
Florida has the second-largest number of distressed commercial properties in the nation, according to a report by CoStar Group.
The Bethesda, Md.-based real estate firm reviewed commercial mortgage-backed securities bondholder reports and federal bank data to find that Florida had 7,760 commercial properties in distress - either repossessed, delinquent on loan payments or flagged by the loan servicers as being a problem. Only California, with 10,239, had more. The national total was 80,734.
In Florida, distressed properties included 3,469 office buildings, 3,576 industrial complexes and 715 shopping centers.
CoStar noted that the number of distressed office buildings nationwide increased to 31,355 in the recent study, up from 19,600 in March.
"The complete reversal in absorption has lead to rapid pileup of the number of buildings that are now more than 60 percent vacant," CoStar said in the study. "That has prompted net operating incomes to plummet and lead to a huge increase in the amount of delinquent loan repayments."
Florida had $3.8 billion in loans that were placed in special servicing by CMBS managers because of problems. That trails only California, with $6.2 billion, and Texas, with $4.2 billion.
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