Trepp reported that the special servicing rate for multifamily commercial mortgage-backed securities (CMBS) loans fell in June. It has been generally trending lower since reaching a recent high in December 2024. However, the overall CMBS special servicing rate on commercial property rose 27 basis points in the month, its third consecutive monthly rise.
Multifamily CMBS special servicing rate trending down
The special servicing rate on CMBS loans on multifamily property fell for the second month in a row in June. It is now at its lowest level since last November when it was 7.37 percent and in the middle of a swift rise. One year ago, it was 5.17 percent. Its year-over-year rise of 301 basis points is the second highest of the property types tracked, trailing only office.
The report found that overall CMBS special servicing rate rose to 10.57 percent, up from 10.30 percent the month before and from 10.17 percent in April. The current rate is now at its highest level since May 2013, according to Trepp.
The recent history of multifamily and overall CMBS special servicing rates is shown in the chart, below.
The largest increase in special servicing rates this month was again on that for office properties, which was up 62 basis points to 16.38 percent, a record high. This rate has jumped 147 basis points in just the last two months. One year ago, it was 10.52 percent.
The special servicing rate on lodging property CMBS fell last month, but this month rebounded almost to the same level it was at 2 months ago. It rose by 54 basis points in June to 10.11 percent.
The special servicing rate for retail properties was up 40 basis points for the month and rose to 11.93 percent. It is up 111 basis points year-over-year.
The special servicing rates for the other property types declined in June.
The rate on CMBS loans on industrial properties crept lower this month, dropping 1 basis points to 0.71 percent. One year ago, it was 0.41 percent.
The special servicing rate on mixed-use properties fell 26 basis points to 12.05 percent. It is up 271 basis points over the last year.
The full Trepp special servicing rate report can be found here.
