The Trepp CMBS Special Servicing Report continued to rise in February, increasing 19 basis points to reach 7.14 percent. This is the first time the overall rate has surpassed the 7 percent mark in about 2.5 years.
Breaking it down by property type, three notable sectors sustained material upticks to their rates, causing the overall rate to increase as it did. Office, mixed-use and retail properties all experienced monthly inclines of at least 20 basis points. Together, these three sectors account for over 70 percent of the special servicing balance across all property types and with respect to new transfers, they represented more than 90 percent of February’s total. This month, the retail special servicing rate climbed by 44 basis points, while office and mixed-use both saw increases of 30 and 22 basis points, respectively. The office rate reached 10.04 percent in February, hitting double-digits for the first time since 2013.
—Posted on March 28, 2024
