Trepp: CMBS Special Servicing Rate Jumps in September

(Image courtesy of Trepp; Breakout image courtesy of Tory Brown/pexels.com)

Trepp, New York, reported its CMBS Special Servicing Rate rose in September, up 33 basis points to 8.79%.

This marks the ninth consecutive monthly increase to the metric, and second-largest jump this year.

The overall rate compares with 6.87% in September 2023.

Four of the five major property types increased by at least 30 basis points.

The office sector jumped 67 basis points to 12.58%. The multifamily rate was up 36 basis points to 6.07%, the retail rate was up 11.22% and the lodging rate was at 7.84%.

Industrial was only up slightly, by 11 basis points to .5%, and mixed use was up 8 basis points to 9.67%.

Some of those rates indicate negative milestones–for example the multifamily rate has now surpassed 6% for the first time in almost nine years, and the retail and lodging rates are both hitting roughly two-year highs.

The new transfer balance to special servicing totaled $3.27 billion, with more than half (58%) coming from the office sector.

Retail represented 16%, lodging 14% and multifamily 7%.

However, on a per-loan basis, lodging transfers carried the most weight, with the average loan at $76.8 million.