In January, the Trepp CMBS Special Servicing Rate rose by 17 basis points to reach 6.95%, primarily due to an increase in debt associated with office properties. This marks the highest level for the rate since October of last year.
According to Trepp, performance varied among different property types. Three categories experienced changes of more than 80 basis points from the previous month. The multifamily sector saw a decrease of 83 bps from its steady rate in December, dropping down to 2.34% in January.
The main contributor to this overall increase was the office sector, which saw a significant rise of 129 bps and now stands at a special servicing rate of 9.74%. This is also its largest monthly increase on record and has not been seen since over ten years ago.
Last month alone, newly transferred loans worth over $3 billion were placed into special servicing across all property types combined; out of this amount alone, $2.6 billion was attributed solely to office loans being transferred for context purposes as there have only been two months where newly transferred balances exceeded that amount throughout all property types during last year’s data collection period.
This article originally appeared on Connect CRE.
