CHART OF THE MONTH: UNDERSTANDING COLUMBUS' CMBS WATCHLIST

Written by: Jake Lord

Jake specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, Retail and Capital Market groups. He is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis, and utilizing statistical information to predict future behavior in the market. Keep reading for his insights into Columbus’ commercial real estate loan performance, key factors driving watchlist activity and how local trends compare to the national market.

A commercial mortgage-backed securities, or CMBS, watchlist is a servicer-maintained list of commercial real estate loans flagged for closer monitoring. Reasons can include changing cash flow, upcoming maturities, property condition or outstanding financial and insurance documentation. Loans may remain current on payments while these matters are reviewed, allowing servicers to track financial performance and compliance with loan requirements.

Columbus in a National Context

Columbus shares many of the financing considerations monitored nationally. Most watchlisted locations retain performing loan classifications, although the reasons for continued monitoring vary across markets.

Within the reviewed extract, Columbus has a higher performing share than the national benchmark and several nearby markets, while remaining below Indianapolis. This provides useful context for the local watchlist but does not establish that Columbus’ overall commercial real estate market faces significantly less distress. Overall, in terms of loan performance, comparable midwestern cities to Columbus are performing in line with the national average.

Metro Area	Grouped Watchlisted Locations	Locations with All Listed Loans Performing	Performing Share
Columbus	173	165	95.4%
Cincinnati	131	121	92.4%
Cleveland	182	167	91.8%
Indianapolis	333	322	96.7%
Pittsburgh	87	82	94.3%
National Benchmark	19,825	18,385	92.7%

Differences in property types, lending programs and portfolio structures can influence each market’s results. The more informative distinction is the mix of monitoring concerns: Columbus’ watchlist places greater emphasis on maturity monitoring and property-related follow-up, while debt-service coverage flags are less prevalent than nationally.

Columbus Metro Properties on CMBS Watchlist

Approximately 95% of the property locations in the September 2026 Columbus-area CMBS watchlist had loans classified as performing. This finding provides context for understanding how CMBS loans are monitored. In total, this watchlist contains 256 records representing 173 distinct property or location groups. Of those locations, 165, or 95.4%, had all listed loans marked performing. Four locations were classified as late, two as 30-day delinquent and two carried maturity-related statuses. These percentages describe the supplied watchlist and should not be interpreted as delinquency rates for the broader Columbus market.

The properties span several sectors. Multifamily accounts for 69 locations, or 40.1% of the list, followed by industrial with 37 locations, or 21.5%. Together, those sectors represent 61.6% of watchlisted locations. Retail contributes 23 locations, office accounts for 19 and hospitality includes 11. The remaining 13 locations comprise mobile home parks, self-storage and mixed-use properties. This distribution describes the list’s composition, rather than the likelihood of distress within each sector.

Factors Contributing to Watchlisting

Monitoring Category	Columbus Locations	Columbus Share	National Locations	National Share
Property inspection, safety or environmental flags	92	53.2%	7,662	38.6%
Debt-service coverage flags	32	18.5%	5,688	28.7%
Pending maturity or anticipated repayment flags	36	20.8%	2,219	11.2%
Occupancy, tenant or lease-related flags	18	10.4%	1,813	9.1%
Missing financial statement flags	1	0.6%	1,052	5.3%

Categories overlap. A location may have multiple monitoring flags, so percentages should not be added together.

Loan Maturity

Approaching maturities prompt servicers to monitor repayment, refinancing and extension plans. Columbus’ greater concentration of maturity flags highlights financing timelines as a local monitoring priority. A performing loan can still require substantial preparation ahead of its repayment date, making maturity monitoring relevant even when regular payments continue.

These flags identify an approaching obligation without establishing whether repayment will be unsuccessful. Subsequent payoffs and extensions are important measures to track when assessing how these financing needs are being resolved.

Operating Performance

Changes in revenue, operating expenses or required loan payments can affect debt-service coverage. A property may maintain stable occupancy while experiencing cash-flow pressure. Performing payment status and financial monitoring can therefore coexist.

Columbus’ smaller share of coverage flags indicates that this is a less frequent monitoring reason within the local sample. It should be considered alongside the property and loan mix, rather than treated as a standalone measure of financial strength.

Property Condition and Reporting Requirements

Inspection findings, repair follow-up, financial statements and insurance documentation also contribute to watchlisting. Property inspection, safety or environmental flags are the most common of the categories reviewed in both samples. Their frequency highlights the importance of collateral monitoring, although the flags do not provide a uniform measure of severity.

Portfolio Considerations

Some loans are secured by properties across several markets. A Columbus location may consequently appear on the watchlist because of an issue elsewhere in its collateral portfolio. Reported flags require attention to their scope, timing and progress toward resolution.

For Columbus, the data identifies refinancing timelines and property-related follow-up as prominent monitoring priorities. Tracking whether these matters are resolved, loans are extended or balances are repaid will provide a clearer understanding of how financing conditions develop over time.

Methodology: Comparisons use grouped property locations from the supplied nationwide extract. Repeated address records were consolidated, and six records without usable property identifiers were excluded. Reporting dates vary. National totals include Columbus. Figures represent shares of watchlisted locations, not market-wide distress rates or shares of outstanding debt.