In June, the Trepp CMBS Special Servicing Rate climbed 31 basis points to 6.42%, marking the fifth consecutive increase and third largest this year. Six months ago, it was 5.17% while 12 months ago it was 4.91%. The office sector saw a particularly notable increase of 81 bps from May to 7.24%, representing its highest rate since 2017 and 323 bps rise since start of 2020 year-to-date (YTD).
Maturity defaults in the office sector are placing additional stress on special servicers as refinancing appetite wanes, according to Trepp data analysis findings. Other sectors that experienced significant increases include multifamily (up 31 bps month-over-month/199 YTD) and mixed use (up 31 bps from May/281 YTD), both reaching 596% respectively; lodging however has seen a decline over past year with no further details provided by Trepp at present time .
