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 climb of 136 bps to reach an overall rate of13.94%. Compared to October last year, this represents an increase of539 bps. The last time the special servicing rate for office properties exceeded13% was back in November2011; it remained above this level until July2012.
The lodging sector also experienced continued growth with its special servicing rate reaching8.32%inOctober.This is similar to levels seen in May2022 when rates were coming down from their COVID-related highs.Multifamily and retail sectors also saw slight upticks during this period with increasesof14bpsand11bps respectively,reaching6.21%and11.37%.
Overall,the CMBS Special Servicing Rate has been on a steady incline for ten months now accordingtoTrepp’s data analysis reported by Connect CRE.
