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The Top Rated Bull and Bear CRE Markets

By Erik Sherman
September 01, 2024

Trepp named its top choices for bull and bear CRE metro markets and did the same for the single most property type and metro combination, during July 2024. The firm is trying to identify what drives positive and negative investor sentiment.

At the top of the bulls is Seattle-Tacoma-Bellevue, WA. The economy is still strong, even with problems at Boeing, because there are still Amazon, Microsoft, Starbucks, Costco, and Nordstrom. There are many maturing CRE loans, but little CRE distress compared to other regions. Of the current outstanding loan balances, 5.67% originated in the last 12 months, which is a slight pullback, and 8.50% will mature in the coming 12 months. The region has the highest overall average cap rate at origination and the lowest delinquency and special servicing rates. Right now, distress and issuance are looking good.

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