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Special Servicing Rate Declines for CMBS, But Other Metrics Rise 

The Trepp CMBS Special Servicing Rate fell 21 basis points in June to 4.91%. Six months ago, the rate was 6.75%, and 12 months ago, it was 8.24%. 

The lodging sector once again saw the largest improvement in the special servicing rate, reporting a 49-bp drop in June to 7.93%. The retail sector followed closely behind with a 40-bp drop to 10.46%. 

However, wrote Trepp’s Maximilian Nelson, “Despite the loan cures representing a positive sign for CMBS and the greater commercial real estate market, elsewhere the Trepp CMBS delinquency rate rose six bps.” Although it’s too early to tell whether a new trend is emerging, increases in the special servicing rate wouldn’t be surprising in the current economic environment.  

Further, the percentage of loans on the servicer watchlist inched up one bp to 22.36%, “breaking what had been a streak of eight consecutive months of declines,” Nelson wrote.. 

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Trepp's Nelson

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-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 15-20 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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