The special servicing rate hit its highest mark since May 2013, increasing 44 basis points to 10.48% in September, according to Trepp. In August, the rate was 10.04%.
An increase in retail and lodging special servicing drove the surge in the rate, which sat at 3.10% a year ago. Trepp says both sectors produced their highest servicing rates reported on record. Retail rose from 17.31% in August to 18.32% in September. Lodging came in at 26.04%, after sitting at 24.99% in August.
Multifamily special servicing rates rose 10 basis points to 2.66%. Office special servicing rates fell eight basis points to 2.85%, while the industrial rate dropped four basis points to 1.17%.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
