Flood of Distressed Retail Not Forthcoming, RCA Figures Show

Posted on August 26, 2011

The retail sector may be moving to the next stage in the cycle of distress resolution. In the second quarter of the year, the volume of new retail centers entering distress fell to $1.6 billion, the lowest figure since the third quarter of 2008, according to Real Capital Analytics (RCA), a New York City-based research firm.

At the end of June, the level of outstanding distress for U.S. retail properties was $26.7 billion, only 3 percent higher than a year earlier.

RCA’s definition of distress includes properties that have been delinquent on their mortgage payments, defaulted on their loans, have been foreclosed on, experienced an owner bankruptcy or are in lender REO.