In December 2023, the Trepp CMBS Special Servicing Rate decreased by six basis points to 6.78%, according to a report from Trepp. However, this is still part of a long-term upward trend as the special servicing rate saw an increase of 167 bps year over year.
Most property types experienced a decrease in their special servicing rate last month, except for mixed-use properties which saw an increase of 108 bps to reach 7.74%. Office properties had their first decline in over a year with a decrease of 42 bps from November’s rate of8.87%to8.45%in December.KBRA also reported that delinquency rates for KBRA-rated U.S.CMBS dropped back down to4 .21 %inDecemberafter increasing by19bps in November.The total delinquent and specially serviced loan rate (the KBRA distressrate) also declinedby25bpsfromNovemberto6 .65%.
KBRA noted that this improvement was seen across most sectors with five outof seven experiencing declines.Multifamily and industrial were the only exceptions as they both increasedfor thesecond consecutive month.This data suggests that there may be some stability returningtotheCMBS market after months offluctuationand uncertainty.
The article “Special Servicing Rate Inches Downward in December” originally appeared on Connect CRE.
