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.
