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Of the 10 metropolitan statistical areas with the highest dollar losses for all of the liquidated commercial-mortgage backed securitized loans, Detroit placed first, with 59.2% followed by Dallas-Fort Worth, with 40.9%, according to Moody’s Investors Service.
In the third quarter, Detroit’s MSA had an additional $71.2 million in losses, increasing loss severity from to 59.2% from 58.3% in the previous quarter.
Dallas’ MSA had the second highest total dollar loss, with an additional $32.8 million in losses in the third quarter. Loss severity decreased to 40.9% from 41.9% in the prior quarter.
"In general, the market expects the major and better performing property markets to have lower loss severities overall than the smaller underperforming property markets," the report stated.
Click on the graph below to view the top 10 MSA’s with the highest total dollar loss.
Loans backed by manufactured housing and mobile home properties had the highest weighted average loss severity, at 48.5%, while loans backed by self-storage properties had the lowest weighted average loss severity, at 33.8%.
Retail properties had the second-highest loss severity at 47.3%.
The five major property types – office, retail, multifamily, industrial and hotel – accounted for 94% of cumulative loan losses by dollar amount.
Click on the graph below to view historical loss severity by property type.
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