NewsHK
Against the backdrop of refinancing pressure building sector-wide, office properties in commercial mortgage-backed securities have been running costs faster than income for five straight years.
Trepp's analysis of its CMBS property sample found that median expense growth outpaced revenue growth in every year from 2021 through 2025, leaving median net operating income up just 0.2% on an implied annualized basis.
Implied annualized operating expense growth came to 2.7% across the five-year sample. The widest annual gap appeared in 2022 at 2.3 percentage points.
It narrowed to 0.3 points in 2023, then reopened to 1.4 points in both 2024 and 2025. Median NOI growth was negative in 2021, 2024, and 2025.
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