CMBS Special Servicing Rate Reaches 13-Year High

The overall Trepp CMBS special servicing rate rose 33 basis points in August 2026 to 11.42%, reversing July’s decline and reaching its highest level since February 2013. A single $1.1-billion Hollywood studio-and-office loan, also the month’s largest new transfer to special servicing, drove mixed-use up 154 bps to 13.47%, Trepp reported.

Office rose 32 bps to 16.90% on large CBD loan transfers, and retail also rose 32 bps to 13.60% on large mall and shopping center transfers. Lodging added 11 bps to reach 8.74%. Industrial and multifamily were the only property types to improve, falling seven bps to 1.27% and three bps to 8.37%, respectively.

In all, the month’s transfers to special servicing totaled $3.16 billion across 32 whole loans, nearly double July’s. Transfers were concentrated in office. Several of the largest transfers ran out extension options, Trepp reported. Loans that cured, were modified and returned, or paid off were far smaller in aggregate, at roughly $500.7 million across 14 whole loans.

Pictured: The CMBS loan on the Hyatt Regency New Orleans was among the large transfers to special servicing during August.

Inside The Story

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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