Trepp: CMBS Special Servicing Rate Jumps in April

(Illustration courtesy of Trepp)

Trepp, New York, reported the commercial mortgage-backed securities special servicing rate “leaped” in April, rising 80 basis points to 8.11%.

“This marks the largest monthly jump that the rate has experienced in nearly four years, with higher monthly upticks only reached during the COVID-19 pandemic in mid-2020,” Trepp said in its monthly CMBS Special Servicing Report. “Furthermore, this is the first time that the rate has eclipsed the 8.00% mark since July 2021.”

The report said three different property types saw special servicing rates increase by 100 basis points or more: the office rate moved to 10.84%, the retail rate increased 106 basis points, and the catch-all ‘other’ properties and multifamily rates increased a “whopping” 236 basis points and 269 basis points, respectively.

Trepp reported the new transfer balance was relatively high in April at $5.4 billion. “Four property types accounted for the lion’s share, with office, retail, ‘other’ and multifamily loans alone representing 98% of the monthly total,” the report said. “Unlike most months where office dominates and multifamily is only a small portion, multifamily transfers led the way in April, with its $1.62 billion accounting for 30% of the monthly sum.”

The overall CMBS special servicing rate increased to 8.11% in April, Trepp said. Six months ago, that rate was 6.80% and one year ago, it equaled 5.62%.