NY Delinquency Rate Performance

January 22, 2015

How is the New York metropolitan real estate investment market doing? Tom Fink discusses the tri-state area commercial mortgage-backed security delinquency rates. It shows that New York State is outperforming its cohorts in NJ and PA. He commented that a lot of the positive performance in NY is concentrated in New York City, particularly in Manhattan. He thinks that’s the market that is driving all of NY State.

“We still see problems outside of the metropolitan area, particularly as you get upstate.” Fink acknowledges what NY State is doing to try to draw businesses upstate with the development and the tax forgiveness plans. In conclusion, it appears that NY has a long way to go before the upstate real estate market is as healthy as the NY City area.


Transcript

Aaron Kaiser: Hello, I'm Aaron Kaiser, Partner at EisnerAmper and Co-Chair of our firm’s Real Estate practice. It's my pleasure today to introduce Tom Fink, Senior Vice President and Managing Director of Trepp LLC. Trepp was founded in 1979 and is the leading provider of information analytics and technology to the commercial mortgage back securities, commercial real estate and banking markets. Welcome. So, Tom, how is the New York metropolitan market doing in all of those?
Tom Fink: Well, Aaron, as you can see from the chart I've put up on the screen here, this breaks down the delinquency rate, which is 30, 60, 90 and foreclosure REO for New York versus Pennsylvania and New Jersey.

As you can see, New York state as a whole is outperforming its cohorts in New Jersey and Pennsylvania and I think if you drive around the New Jersey markets, Pennsylvania market, you can see that, but I think that what you don't see in this particular chart is that the lot of the good performance in New York is concentrated in New York City, particularly in Manhattan. That's the market that I think is driving all of New York state. We still see problems, you know, outside of the metropolitan area, particularly as you get upstate, you know, you look at what New York state is doing, trying to draw businesses upstate with a development plan and the tax forgiveness. I think New York as a state has a long way to go before upstate is the healthiest city area.
Aaron Kaiser: Tom, thank you very much for your insights and thought leadership.
Tom Fink: Aaron. It was my pleasure. I always liked working with you and the folks at EisnerAmper.
Aaron Kaiser: Thank you so much. For more information, go to EisnerAmper.com

About Aaron Kaiser

Aaron Kaiser is an Audit Partner and member of the Professional Practice Group and a leader in the Real Estate accounting services group.

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