Trepp reported that the special servicing rate for multifamily commercial mortgage-backed securities (CMBS) loans rose in July, although it has stayed in a narrow range since reaching a recent high in December 2024. However, the overall CMBS special servicing rate on commercial property fell 9 basis points in the month as most property types saw their rates fall or remain unchanged.
Multifamily CMBS special servicing rate stalls
The special servicing rate on CMBS loans on multifamily property rose 19 basis points in July to 8.37 percent. This was the largest monthly increase for the property types Trepp tracks. Since last December, it has been as high as 8.72 percent and as low as 8.18 percent, but it has not moved consistently either higher or lower. One year ago, it was 5.11 percent. Its year-over-year rise of 326 basis points trails those of mixed-use and office properties, but is well above those of the other property types Trepp tracks.
The report found that the overall CMBS special servicing rate fell to 10.48 percent, down from the record high of 10.57 percent reached the month before but up from 10.30 percent in May. The rate is up 218 basis points from the level of the year before.
The recent history of multifamily and overall CMBS special servicing rates is shown in the chart, below.
After that for multifamily, the largest increase in special servicing rates this month was on that for mixed use properties, which was up 16 basis points to 12.21 percent. Despite the rise, this rate is still well below its level in February, when it was 13.04 percent. One year ago, it was 328 basis points lower at 8.93 percent.
The special servicing rate on office properties continues to be the highest by far at 16.21 percent, despite falling 17 basis points for the month. It is up 496 basis points year-over-year.
The special servicing rate on lodging property CMBS fell this month dropping 10 basis points to 10.01 percent. It is up 268 basis points year-over-year.
The special servicing rate for retail properties was down 27 basis points for the month, falling to 11.66 percent. It is up 77 basis points year-over-year.
The rate on CMBS loans on industrial properties was unchanged this month. It remains at 0.71 percent. One year ago, it was 0.40 percent.
The full Trepp special servicing rate report can be found here.
