CMBS Special Servicing Rates Surge: Trepp
Retail- and hospitality-secured CMBS hit record-high levels in September.
October 8, 2020 | Scott Baltic | Commercial Property Executive
The U.S. CMBS special servicing rate climbed to 10.48 percent, its highest point since May 2013, according to Trepp.
Trepp’s September 2020 U.S. CMBS Special Servicing Report also noted that the overall rate—which has been steadily rising since March and climbed 44 basis points in September— was driven predominantly by increases in the retail and lodging special servicing rates, both of which were the highest ever reported, 18.32 and 26.04 percent, respectively.
Back in March, the overall rate was 2.83 percent. Beyond that, the bifurcation among product types is stark. Counting both legacy CMBS 1.0 packages and CMBS 2.0+ products (as already cited for retail and hospitality), special servicing rates for multifamily were 2.66 percent (up 10 basis points in September), for office were 2.85 percent (down 8 basis points) and for industrial were 1.17 percent (down 4 basis points).
