2021 Multifamily Special Servicing Rate

The multifamily special servicing rate increased 4 basis points to 2.7 percent, according to Trepp.
Source: Trepp
Source: Trepp

The Trepp CMBS Special Servicing Rate maintained its strong downward movement in June, helped by the US economy continuing to make progress towards a full reopening. The overall reading dropped by 41 basis points to 8.2 percent last month, making it the ninth consecutive monthly decrease.

The percentage of loans on servicer watchlist climbed to 27.5 percent in June, a rise of 97 basis points from May’s tally. The watchlist rate has now increased for sixth consecutive months as loans removed from special servicing were later added to servicer watchlist for continued surveillance.

Roughly $1.28 billion in CMBS debt across 36 notes were transferred to special servicing in June. The multifamily special servicing rate increased 4 basis points to 2.7 percent, according to Trepp.

—Posted on Jul. 27, 2021


Source: Trepp
Source: Trepp

Helped by an improving economic outlook from easing lockdown restrictions across the U.S., the Trepp CMBS Special Servicing Rate continued to trend lower last month. The overall reading fell 38 basis points to 8.7 percent in May, making it the eighth consecutive decrease in the monthly percentage since September 2020.

The CMBS industry continues to make headway in its recovery from COVID-related distress that had impacted the commercial real estate markets last year, which has led to sizable declines in the special servicing rates for many segments. With the U.S. making progress towards “normalcy,” that should result in the continued improvement in the performance of CMBS loans.

By property type, the multifamily special servicing rate decreased by one basis point to 2.7 percent.

The watchlist rate once again climbed in May, boosted in part by loans that were transferred out of special servicing and added to servicer watchlist for further surveillance. The percentage of loans on servicer watchlist rose for the fifth consecutive month to 25.6 percent, up 97 basis points from April.

May remittance data indicates that about $1.1 billion in CMBS loans were removed from special servicing last month.

—Posted on Jun. 29, 2021