Trepp Reports Decline in CMBS Special Servicing Rate for July
The CMBS Special Servicing Rate fell nine basis points to 10.48% in July, marking the first decline after three consecutive months of increases. Despite the dip, the rate remains elevated compared to historical averages.
The overall balance of loans in special servicing saw little change month-over-month. However, the total volume of outstanding CMBS loans increased by approximately $5 billion, reaching $597.0 billion in July.
Among major property sectors, four of the five experienced a decline in special servicing rates, continuing a recent trend. Retail led the improvement with a 29-basis-point drop, while the office sector saw a 17-basis-point decline to 16.21%, following a record-high rate in the previous month.
Multifamily was the only property type among the top five to record an increase, rising 19 basis points to reach 8.37%.
These shifts highlight ongoing volatility in the commercial real estate market, even as some sectors show signs of stabilization.
