The Trepp CMBS Special Servicing Rate rose 33 basis points to 8.79% in September. This was the ninth consecutive monthly increase and the second-largest uptick of 2024, the firm reported.
Distress was consistent throughout, with the respective special servicing rates of the five major property types all increasing. Although these increases varied in degree, four of the five property types increased by at least 30 bps. Driving the overall September increase was office, which surged 67 bps to 12.58%.
The office rate is now up more than 200 bps over the past four months alone, with distress continuing to mount. More than half the September dollar amount of new transfers to special servicing occurred in the sector, according to Trepp.
The multifamily rate rose 36 bps to 6.07%, surpassing the 6% mark for the first time in nearly nine years. Furthermore, the retail rate reached a near two-year high of 11.22%, and the lodging rate hit a two-year high of 7.84%. Even with an 11-bp increase in September, though, industrial CMBS in special servicing still comes in below 1%.
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