The Trepp CMBS Special Servicing Rate dropped six basis points in January to 5.11 percent – down for the second month in a row. Six months ago, the rate was 4.79 percent, and 12 months ago, the rate was 6.33 percent.
The January rate declined again after four consecutive increases from August to November. In January, three of the five major property types saw increases in the special servicing rate (multifamily, office, retail). The largest basis point decline by property type in the month of January was once again the lodging sector, down 38 basis points from the previous month. The industrial special servicing rate was unchanged.
The office sector saw a 16-basis point increase in the special servicing rate in January, and it once again led the way for all new special servicing transfers. Office properties backed 78 percent of all new special servicing transfers, most notably the $277.1 million Wells Fargo Center loan which was transferred due to maturity default. Loan maturities continue to burden office loan performance, and the office special servicing rate surpassed 4 percent for the first time since January 2019.
—Posted on Feb. 28, 2023
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