In January, the Trepp CMBS Special Servicing Rate saw a significant increase of 17 basis points, reaching its highest level since October 2021. The rise was primarily driven by debt associated with office properties.
According to Trepp’s data, performance varied across different property types. Three categories experienced changes of more than 80 basis points compared to the previous month. Notably, after remaining stable in late 2023, the multifamily rate dropped by a substantial margin of 83 bps to reach just over two percent in January.
The most notable contributor to this overall increase was the office sector which saw its special servicing rate jump by an unprecedented amount of129 bps to reach almost ten percent for this month alone. This is also the first time that this particular category has seen such high rates since over ten years ago.
In terms of newly transferred loans worth $3.30 billion were moved into special servicing last month alone and out these loans around $2.6 billion were related solely towards office properties as well – providing some context on how much activity there has been recently compared with previous years where only two months had balances exceeding $2 .6 billion across all property types combined .
This article originally appeared on Connect CRE.
