Another month, another increase in the special servicing rate, according to Trepp. Between January and February, it rose to 7.14%, the first time in nearly three years that it topped 7%. The same time in 2023, the rate was 5.18%, while at 6.67% six months ago.

Split that into CMBS 1.0 and CMBS 2.0+ and the respective rates are 23.40% and 7.03%, showing the more conservative underwriting of the latter. And the increases are largely a factor of three property sectors: office, mixed-use, and retail.


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