2024 Multifamily Special Servicing Rates

The Trepp CMBS Special Servicing Rate increased another 34 basis points to reach 9.14 percent in October 2024.

In the last six months, the rate has increased just over 100 basis points, with the October figure reflecting the tenth consecutive monthly increase.

Among the major property types, the office sector saw the highest month-over-month increase in the special servicing rate, surging 136 basis points to 13.94 percent. Compared to October 2023, the office rate has climbed 539 basis points. The last time the office special servicing rate breached 13 percent was in November 2011, after which the rate stayed above 13 percent until July 2012.

---

READ ALSO: Managing the Return of Volatility

---

The lodging rate has continued to climb, reaching 8.32 percent in October; the last time it was above 8 percent was in May 2022 when the rate was coming down from Covid highs. The multifamily and retail property types also experienced upticks in October, rising 14 basis points to 6.21 percent and 14 basis points to 11.37 percent, respectively.

New Transfers

There was a substantial $3.1 billion in outstanding loans that transferred to special servicing in October. Just over 70 percent of the loan balance came from the office sector, with $2.2 billion in office loans transferring to the special servicer in October. Lodging, retail and multifamily made up about 15 percent, 9 percent and 5 percent of the remainder of the newly transferred loan amount, respectively.

—Posted on November 27, 2024