CMBS Special Servicing Rate Climbs to New Post-2013 High

The Trepp CMBS special servicing overall rate rose seven basis points in September to 11.49%, its highest level since February 2013. The seven-bp increase followed a steeper 33-bp increase in August, which reversed July’s decline.

Within that overall increase, results were mixed among property types. Retail rose 24 bps in September to 13.84%, lodging rose 21 bps to 8.95% and multifamily rose 17 bps to 8.54%. Conversely, mixed-use fell 30 basis points to 13.17%, office fell five bps to 16.85%, and industrial fell four bps to 1.23%.

In September, new transfers to special servicing totaled roughly $2.65 billion across 42 whole loans, with office accounting for 57% of the total, according to Trepp. The largest loan to transfer was the $512.8-million One SoHo Square (pictured), an urban office property in New York City which moved to special servicing for imminent balloon/maturity default.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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