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CMBS Special Servicing Rate Increases for Sixth Consecutive Month
The Trepp CMBS Special Servicing Rate ticked up slightly in June, rising two basis points to 8.23%. Although the monthly increase was minimal, Trepp noted that it represents the sixth consecutive monthly increase. Prior to the COVID-19 pandemic, the last time the rate eclipsed this month’s 8.23% was January 2014, according to Trepp.
A few property types experienced more than modest change for good or bad in June. Mixed-use special servicing rose the most, up 40 bps in June to 9.34%. This is the first time the mixed-use rate has eclipsed 9.00% since July 2013. The office rate also rose in June, increasing 27 bps to 10.79% after its first decline of the year in May.
Two property types that saw material improvement were lodging and multifamily, with drops of 54 and 26 bps, respectively. Although the multifamily rate experienced some relief, it remains relatively high, still sitting above 5.00%. Retail continues to hold the highest special servicing rate at 10.82%, while at the other end of the spectrum sits industrial at 0.33%.
- ◦Financing
