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CMBS Special Servicing Rate Improves in May
The Trepp CMBS Special Servicing Rate decreased by 51 basis points in May to 10.86%. The improvement was driven primarily by the return of a massive office loan backed by One New York Plaza in Lower Manhattan (pictured) to the master servicer and denominator effects. The One New York Plaza loan went into special servicing this past December.
Although new transfers remained elevated last month, including several large office and retail loans, loan resolutions and returns to the master servicer, along with a larger overall outstanding CMBS balance, outweighed new transfers and pushed the overall rate lower month-over-month, Trepp reported.
Special servicing rates declined for most property types in May. Office fell 91 bps to 16.75%, mixed-use declined 59 bps to 11.62% and multifamily dropped 57 bps to 8.51%. Lodging CMBS posted the largest improvement, falling 121 bps to 8.45%. Conversely, industrial inched upward by five bps to 1.28% and retail edged up one bp to 13.00%.
- ◦Financing
