In January, the Trepp CMBS Special Servicing Rate rose by 17 basis points to reach 6.95%, driven primarily by debt associated with office properties. This marks the highest level for this rate since October of last year.
According to Trepp, performance varied across different property types, with three seeing significant increases or decreases of over 80 basis points. The multifamily sector saw a decrease of 83 bps in January after remaining steady in late 2023.
The largest increase was seen in the office sector, which drove the overall rate up as it rose by an unprecedented amount of129 bps to reach a rate of9.74%. This is the highest monthly increase on record and hasn’t been seen since over ten years ago.
Last month alone saw more than $3.30 billion worthof loans being transferred into special servicing, with $2.6 billion coming from office loans alone.This is significantly higher compared to any month in all throughout2023 when only two months had newly transferred balances exceeding$2.6 billionacross all property types.
