“10th Straight Month of Increase in CMBS Special Servicing Rate”

"10th Straight Month of Increase in CMBS Special Servicing Rate"

According to Trepp, the CMBS Special Servicing Rate rose by 34 basis points in October 2024, reaching a total of 9.14%. This marks the tenth consecutive monthly increase and a total rise of over 100 bps in the past six months.

Out of all major property types, office properties saw the highest month-over-month increase with a jump of 136 bps to reach an overall rate of13.94%. Compared to October 2023, this is an increase of539 bps for office properties. The last time this sector’s special servicing rate was above13% was back in November2011; it remained at or above that level until July2012.

The lodging sector also continued its upward trend with a current special servicing rateof8.32%, which is similar to levels seen back in May2022 when rates were coming down from COVID highs.Multifamily and retail sectors also experienced slight increasesin their special servicing rates during October: multifamily rose by14bpsto6.21%, while retail increased by11bpsreaching11.37%.

Overall,theCMBS Special Servicing Rate has been onthe risefor ten consecutive months accordingtoTrepp’s data analysis.

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

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