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CMBS Special Servicing Rate Dips in July as Office, Lodging Improve
The Trepp CMBS special servicing overall rate declined 11 basis points in July to 11.09%, partially reversing the increases of recent months. However, decreases in special servicing rates were not seen across the board in all property types.
The improvement was led by office, the largest special servicing category, along with lodging, whose rates fell 53 and 26 bps to 16.58% and 8.63%, respectively. Industrial edged down three bps to 1.34%.
That progress outweighed a sharp increase in retail, where a heavy wave of regional-mall loans transferred into special servicing for maturity default, lifting the retail rate 33 bps to 13.28%, Trepp reported Multifamily rose 16 bps to 8.39%, and mixed-use edged up two bps to 11.93%.
New transfers to special servicing totaled roughly $1.69 billion across 41 loans and were unusually concentrated in retail, which accounted for about $903.6 million. The flow was dominated by regional malls reaching their balloon maturities.
- ◦Financing
