### Trepp CMBS Special Servicing Rate Sees Significant Increase in February
The Trepp CMBS Special Servicing Rate rose by 45 basis points in February 2025, reaching 10.32%. This increase follows a slight decline in January, which had marked the first drop in more than a year.
Trepp attributed the notable rise in February to two key factors. Firstly, the net balance of loans in special servicing increased by $1.8 billion. Secondly, the overall balance of loans outstanding declined by $8.8 billion. As Trepp’s Vivek Denkanikotte explained, “a comparatively larger numerator divided by a comparatively smaller denominator led to the substantial jump in the monthly rate.”
Among property types, retail and office were the primary contributors to the overall rate increase. The retail special servicing rate rose by 59 basis points to 11.26%, reversing a 100-basis-point drop from the previous month. Meanwhile, the office rate climbed 108 basis points to 16.19%, reaching another 25-year high.
Additionally, the mixed-use special servicing rate increased by 33 basis points to 13.04%, surpassing the 13% mark for the first time since early 2013. Other property types saw only minor fluctuations, with no changes exceeding 15 basis points in either direction.
