Trepp: CMBS Special Servicing Rate Retreats Slightly After Three Increases

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Trepp, New York, reported the commercial mortgage-backed securities special servicing rate dipped in July after peaking at a 12-year high in June.

The CMBS special servicing rate decreased nine basis points to 10.48%, Trepp’s monthly Special Servicing Report said.

“This decrease broke a streak of three consecutive monthly rate increases, although the rate still remains elevated compared to historical norms,” Trepp noted. “The balance of loans in special servicing was little changed compared to June, but the overall balance of CMBS loans outstanding rose about $5 billion to $597.0 billion in July.”

Looking at different property types, Trepp said the special servicing rates for four of the five major property types declined in July, continuing a recent trend. The rate drops were relatively small, with retail’s 29 basis point drop the largest improvement. The office rate’s 17-basis-point decrease to 16.21% was notable following its record high the month prior. The multifamily rate was the only of the big five property types to rise, climbing 19 basis points to 8.37%.

One year ago, the overall CMBS special servicing rate equaled 8.30%, the report said.