CMBS Special Servicing Rate Leaps in August, Trepp Finds

(Illustration courtesy of Trepp)

Trepp, New York, reported the commercial mortgage-backed securities special servicing rate jumped in August, climbing 16 basis points to 8.46%.

The Trepp CMBS Special Servicing Report said the CMBS special servicing rate has increase every month this year to reach a three-year high in August.

The report said the overall U.S. CMBS special servicing rate (including CMBS 1.0 and 2.0+) equaled 8.46% in August. One year ago, the CMBS special servicing rate was 6.67%.

By sector, the industrial special servicing rate dipped 1 basis point to 0.39%. All other sectors saw increases, including the lodging sector, which had a 9 basis point increase to 7.42% and mixed-use properties, which saw a 66 basis point increase to 9.59%. The office special servicing rate jumped 66 basis points to 11.91% and the multifamily rate rose 60 basis points to 5.71%.

New transfers into special servicing were moderate in August, totaling just over $2.65 billion, Trepp noted. “The breakdown by property type was more spread out compared to July,” the report said. “Office was the biggest chunk, its $1.4 billion-worth accounting for 52%, followed by mixed-use and multifamily, which represented 23% and 16%, respectively.”