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Special Servicing Rate Dips in December; Mixed-Use, Retail Move Higher
The Trepp CMBS Special Servicing Rate decreased 15 basis points in December 2025 to 10.71%, led by declines in the office and lodging rates. However, Trepp noted that performance varied by property type. Additionally, the overall rate is up by 82 bps from December 2024.
The special servicing rates for lodging, office and multifamily declined by 54 bps, 52 bps and seven bps, respectively. In contrast, mixed-use, retail and industrial moved higher by 60 bps, 42 bps and 10 bps.
The balance of new loans transferred to special servicing in December totaled about $1.9 billion across 49 loans. Retail led December transfers with $884 million across 18 loans, representing nearly 48% of the monthly total. The largest of these was the $310-million loan backed by Penn Square Mall in Oklahoma City (pictured).
The largest loan to enter special servicing in December was the $355-million Orion Office Portfolio loan, which transferred for imminent monetary default. The loan, officially classified as mixed-use, is set to mature in February 2027 and has never been delinquent.
