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CMBS Special Servicing Rate Recedes in August; Office Climbs 70 BPs
The Trepp CMBS Special Servicing rate receded moderately in August, falling 19 basis points to 10.29%.
This was the second consecutive monthly decrease after an all-time high in June. On a year-over-year basis, the overall rate was higher, as was the special servicing rate for each property type.
The main cause for the decrease in the headline rate during August was a decline in the overall balance of loans outstanding, which dropped by nearly $14 billion to $583.0 billion from the previous month. When analyzing by property type, three sectors experienced substantial shifts in their respective rates.
The two sectors with big reductions were lodging and mixed-use, according to Trepp. The lodging rate fell 91 bps in August to 9.10%, while mixed-use fell 157 bps to 10.64%. Conversely, the office CMBS special servicing rate climbed 70 bps to another record high of 16.90%. Y-O-Y, office special servicing is up by nearly 500 bps.
