### CMBS Loan Loss Volume Declines in February; Loss Severity Increases
In February 2025, a total of $79.7 million across 14 CMBS loans were resolved, with total losses amounting to $38.2 million, according to Trepp. This represented an average loss severity of 47.87%. The loan loss volume saw a significant decline compared to January, which recorded losses of $246.9 million.
Despite the decrease in loan loss volume, Trepp reported an increase in loan loss severity for loans resolved in February. The severity for loans with losses exceeding 2% rose to 79.68%, up from 67.63% in January. The running average loss severity for such loans over the past 12 months was recorded at 65.15%, slightly higher than the 12-month moving average from the previous month.
Additionally, the 12-month moving average monthly disposed balance declined to $199.3 million in January, down from $204.4 million the previous month. Meanwhile, the 12-month moving average loss severity decreased slightly to 61.96% from the 62.65% recorded in January.
