Special servicing on CMBS loans took an 80-basis point jump between March and April to land at 8.11%, according to Trepp. It was the biggest month-over-month gain in almost four years. The only higher increases were in the middle of 2020 in the heat of the pandemic. It was also the first time since 2021 that the monthly rate was higher than 8.00%.
"There were some big movers when analyzing by property type, with three up by at least 100 basis points," Trepp wrote. The special servicing percentages by property type were — retail (up 105 basis points to 10.85%); office (up 53 basis points to 10.84%); mixed-use (down 28 basis points to 8.25%); lodging (up 5 basis points to 7.40%); multifamily (up 269 basis points to 5.10%); and industrial (flat at 0.41%). The multifamily rate passed "the 5.00% mark for the first time since June 2017."
Overall CMBS 2.0 special servicing rate was 8.00%, up year over year from 5.39%. For CMBS 1.0, it was 24.86%, down year over year from 34.70%.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.