Thread by @TreppWire

THREAD: We recently identified the property characteristics which were featured in the best performing #retail properties over the last five years. Our categories were property subtype, region, the year in which it was built, and tenant mix. More info on the top performers below.

The best performing property subtypes were drug stores and urban retail. Drug store loans performed well due to their consistently high occupancy rates and low delinquency readings. Urban retail’s strong performance can be credited to its massive NOI figures.

Properties in the Middle Atlantic US (NY, NJ, and PA) topped all other regions in our study. The strong performance of the region is helped along by the massive volume of retail #CMBS in #NYC, as well as the large concentration of single-tenant properties.

Believe it or not, the oldest properties in our analysis performed the best. Loans backed by properties constructed before the 1940s boast high levels of NOI per square foot and occupancy. Properties from the 2010s also deserve praise for their lack of delinquencies.

Single-tenant properties were the standout category when looking at properties by the percentage of space taken by the top tenant. They exhibited the highest average NOI PSF, highest average occupancy rate, and the lowest average delinquency rate.

For the complete #retail analysis, read our blog post and request the report.