The CMBS Special Servicing Rate for June saw a slight increase of two basis points to 8.23%. This marks the sixth consecutive monthly rise, according to Trepp. Prior to the pandemic, this rate had not surpassed 8.23% since January 2014.
In June, there were notable changes in certain property types with mixed-use special servicing experiencing the largest increase at 40 bps and reaching its highest point since July 2013 at a rate of 9.34%. The office sector also saw an uptick in special servicing by 27 bps after its first decline of the year in May.
On a positive note, lodging and multifamily properties showed improvement with drops of 54 and26 bps respectively. However, despite this decrease,the multifamily rate remains relatively high above5%.
Retail continues to holdthe highest special servicingrateat10.82%, while industrial maintainsa lowrateof0 .33%.
The latest data from Trepp reveals that for six months straight,theCMBS Special Servicing Rate has been on an upward trend.This month’sincrease may seem small,but it is significant as it reflects ongoing challenges faced by commercial real estate due topandemic-related impacts.The hospitality industry has shown signs of recoverywith alarge dropin theirspecialservicing rates.However,multifamily still faceschallengesasits rates remain elevated.Retailcontinues totopthe listwiththehighestspecialservicingratewhileindustrialremainsatthelowestendofthespectrum.These trends indicate that there is still uncertainty within different sectors,and careful monitoring will be necessary moving forward.
