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CMBS Special Servicing Rate Posts Biggest Monthly Gain Since 2020
The Trepp CMBS Special Servicing Rate rose 23 basis points in November to 5.20%, in contrast to the incremental increases seen in prior months. Six months ago, the rate was 5.12%, and 12 months ago, the rate was 6.95%.
The November rate represents the largest month-to-month increase since September 2020, according to Trepp. In November, three of the five major CRE property types experienced a rise in their respective special servicing rates, while the retail sector special servicing rate inched down and industrial was unchanged.
November’s 23-bp rise was largely due to a flurry of lodging, multifamily and office transfers to special servicing, Trepp reported. In a month where the multifamily delinquency rate rose nearly 100 bps, the multifamily special servicing rate also rose by 69 bps, more than any other major CRE property type.
Approximately $2.8 billion in CMBS debt was transferred to a special servicer in November. Lodging transfers made up 29% of the newly transferred balance, with office comprising 20%.
- ◦Financing
