Trepp CMBS special servicing rate hits 11.49%, highest since February 2013

The Trepp CMBS special servicing rate rose seven basis points in September to 11.49%, the highest since February 2013. The increase was carried by retail, lodging and multifamily, while office's rate fell five basis points to 16.85%.

That seven-basis-point gain followed a 33-basis-point increase in August. This publication reported the headline figures on Oct. 13; the Connect CRE account adds the property-type breakdown.

Retail's 24-basis-point rise was the largest increase of the six and put its rate at 13.84%, just over three percentage points below office's 16.85%. Mixed-use recorded the biggest decline, 30 basis points to 13.17%; industrial, at 1.23%, remains the lowest of the group.

New transfers to special servicing totaled roughly $2.65 billion across 42 whole loans, with office accounting for 57% of the total, according to Trepp. The largest was the $512.8 million One SoHo Square, an urban office property in New York City that moved to special servicing for imminent balloon/maturity default.

Office accounted for 57% of September's new transfers by dollar volume even as its outstanding special servicing rate fell five basis points. As this publication reported in August, CRE CLO borrowers have been extending maturities and holding CLO delinquencies below 1%; modifications, not servicing transfers, have absorbed maturity pressure on the CLO side.