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CMBS Special Servicing Rate Climbs to Highest Level Since 2012
The Trepp CMBS special servicing rate rose 25 basis points to 11.74% in October 2026, marking the highest rate since December 2012. Lodging drove the increase, accounting for 37% of the $3.01 billion in loans that transferred to special servicing during the month.
Lodging also led the month’s largest transfers, according to Trepp. The $745.7-million Project Prime loan, secured by a portfolio of 84 lodging properties, was the largest, followed by the $517.7-million Blackjack Portfolio, a multifamily loan that reached its fully extended maturity last month.
Other notable transfers included the $302.2-million Hyatt Regency Waikiki Beach Resort & Spa in Honolulu and the $285-million Gateways mixed-use loan in Newark, N.J. About 45% of the balance across the notable loans beyond the two largest transferred because of imminent balloon or maturity defaults.
Special servicing rates rose for four of the six property types and fell for two. Lodging posted the largest increase, up 122 bps to 10.17%, followed by multifamily, up 69 bps to 9.22%, and mixed-use, up 44 bps to 13.61%. Industrial rose four bps to 1.27%. Office fell 25 bps to 16.60%, while retail fell 13 bps to 13.71%.
- ◦Financing
