The Trepp CMBS Special Servicing Rate ticked up slightly in June, rising 2 basis points to 8.23 percent. Despite this month’s increase being minimal, the rate itself remains at a very elevated level. Prior to the COVID-19 pandemic, the last time the rate eclipsed this month’s 8.23 percent was back in January 2014. With June’s modest uptick, this now marks the sixth consecutive monthly incline for the special servicing rate.
Parsing it out, there were a few property types that experienced more than modest change. Mixed-use special servicing rose most, up 40 basis points in June to hit 9.34 percent. This is the first time the mixed-use rate has eclipsed 9.00 percent since July 2013. The office rate also rose in June, increasing 27 basis points to 10.79 percent after its first decline of the year one month prior. Two property types that saw material improvement were lodging and multifamily, with drops of 54 basis points and 26 basis points, respectively. Though the multifamily rate experienced some relief, it remains relatively high, still sitting above 5.00 percent.
—Posted on July 26, 2024