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CMBS Special Servicing Rate Holds Steady in March; Office Leads at 16.2%
The special servicing rate for CMBS loans remained virtually unchanged in March at 9.9%, Morningstar Credit reported. The special servicing rate is the highest among office, with 16.2% of office loans by balance now with the special servicer, down slightly from 16.4% in February.
On a year-over-year basis, office has experienced the steepest increases in special servicing, rising 470 basis points from March 2024. Multifamily ranks second with a 450-bp rise from a year ago to 7.1%.
Morningstar Credit reported that the March cycle saw a loan modification finalized for Worldwide Plaza ($940.0 million | WPT 2017-WWP, GSMS 2017-GS8, BMARK 2018-B1). Backed by a two-million-square-foot office tower at 825 Eighth Ave. in Midtown Manhattan, the modification allows the reserve funds to cover expenses and debt service.
“With these modifications, the loan is now being returned to the master servicer,” according to Morningstar Credit. “However, risks remain as the largest tenant looks to vacate.”
Pictured: Worldwide Plaza.
- ◦Financing
