In December 2023, the Trepp CMBS Special Servicing Rate decreased by six basis points to 6.78%. However, the overall trend is still on an upward trajectory as it saw a total increase of 167 bps year over year.
According to Trepp’s report, most property types experienced a decrease in their special servicing rate last month except for mixed-use properties. The mixed-use category saw an increase of 108 bps in December after falling by 104 bps in November to reach a rate of 7.74%.
Office properties showed significant improvement with its first decline in more than a year as its special servicing rate dropped from8.87%to8.45%inDecember.Retailpropertiesalsoexperiencedasubstantialdeclinewitha46basispointdropinDecemberreachingarateof9.37%.
Similarly,KrollBondRatingAgency(KBRA)reportedearlierthismonththatthedelinquencyrateforKBRA-ratedU.S.CMBSpulledbackto4.21%,fullyoffsettingNovember’s19-bpincrease.Thetotaldelinquentandspeciallyservicedloanrate(theKBRAdistressrate)alsodeclinedfromNovemberto6 .65%,adropof25bps.
According to KBRA,theimproveddistressratelargelyaffectedfiveoutofsevensectorswhilemultifamilyandindustrialpropertiesexperiencedanincreasefortwomonthsinarow.ThepostSpecialServicingRateInchesDownwardinDecemberappearedfirstonConnectCRE.
