Trepp reported that the special servicing rate for multifamily commercial mortgage-backed securities (CMBS) loans rose in August, although it remains below its level of last December. However, the overall CMBS special servicing rate on commercial property fell another 20 basis points in the month as the level retreated from the all-time high it reached in June.
Multifamily CMBS special servicing rate plateaus
The special servicing rate on CMBS loans on multifamily property rose 19 basis points in August to 8.61 percent. Office was the only other property type to see its rate rise in the month. Since last December, the multifamily special servicing rate has occupied a narrow range, but August’s rates is the highest since December. One year ago, the multifamily rate was 5.71 percent. Its year-over-year rise of 290 basis points trails only that of office properties.
The report found that the overall CMBS special servicing rate fell to 10.28 percent, down from the record high of 10.57 percent reached in June and down from 10.48 percent last month. The rate is up 182 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.
The largest increase in special servicing rates this month was on that for office properties, which jumped 69 basis points to 16.90 percent. This is a post-pandemic high for this rate. One year ago, it was 499 basis points lower at 11.91 percent.
The special servicing rates on all of the other property types that Trepp tracks fell for the month.
The special servicing rate on mixed-use properties took a sharp fall this month, dropping 157 basis points to 10.64 percent. It is still up 105 basis points year-over-year.
The special servicing rate on lodging property CMBS fell 91 basis points to 9.10 percent. It is up 168 basis points year-over-year.
The special servicing rate for retail properties was down 17 basis points for the month, falling to 11.49 percent. It is up 57 basis points year-over-year.
The rate on CMBS loans on industrial properties was down 10 basis points this month. It fell to 0.61 percent. One year ago, it was 0.39 percent.
The full Trepp special servicing rate report can be found here.
