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CMBS Special Servicing Increases for Fifth Consecutive Month
The Trepp CMBS Special Servicing Rate climbed 31 basis points in June to 6.42%. This represents the fifth increase in a row and the third largest this year. Six months ago, the rate was 5.17%, while 12 months ago, it was 4.91%.
Most notable was the increase in the office sector, an 81-bp increase from May to 7.24%. That represents the highest office rate since 2017 and it has risen 323 bps since the start of this year.
Maturity defaults in the office sector are placing additional stress on special servicers as the appetite for refinancing wanes, according to Trepp.
Other sectors that saw significant increases included multifamily, up 31 bps month-over-month and 199 bps year-over-year to 3.28%; and mixed-use, up 31 bps from May and 281 bps from a year ago to 5.96%. Conversely, the lodging special servicing rate has declined over the past year, Trepp reported.
- ◦Financing
