2023 Multifamily Special Servicing Rates

Source: Trepp

The Trepp CMBS Special Servicing Rate rose seven basis points in April to 5.62 percent – the third increase month-to-month this year. Six months ago, the rate was 4.97 percent, and 12 months ago, the rate was 5.30 percent.

The April increase was marked by a number of large office transfers and one large lodging portfolio transferred, split into six different pools of CMBS debt. In April 2023, two of the major commercial real estate property types faced increases in delinquency rates, while two other property types saw decreases, and one was unchanged. The most notable movements were in the office and lodging sectors, which had rate increases of 62 and 17 basis points, respectively. The retail special servicing rate declined by 67 basis points.

—Posted on May 31, 2023

Source: Trepp

The Trepp CMBS Special Servicing Rate rose 37 basis points in March to 5.55 percent – the largest month-over-month increase since August of 2020. Six months ago, the rate was 4.94 percent, and 12 months ago, the rate was 5.66 percent.

The March increase was significant for many reasons. The volume of large loans to transfer was higher, as nine loans with an outstanding loan balance of at least $100 million were transferred. Also, three of the five major property types saw significant increases in the special servicing rate.

The retail rate went up 84 basis points, while multifamily and office both increased by 34 basis points.

—Posted on Apr. 28, 2023

Source: Trepp

The Trepp CMBS Special Servicing Rate rose seven basis points in February to 5.18 percent – back up beyond the rate recorded at the close of 2022. Six months ago, the rate was 4.92 percent, and 12 months ago, the rate was 6.08 percent.

The February rate increase marks the fifth rise in the last seven months. In February, three of the five major property types saw increases in the special servicing rate (multifamily, office, industrial). However, it was the multifamily and office sectors that were the main drivers of the overall special servicing rate increase, both up 43 basis points respectively.

—Posted on Mar. 29, 2023

Source: Trepp

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