The Trepp CMBS Special Servicing Rate decreased nine basis points to 10.48% in July. The decrease broke a three-month streak of consecutive monthly rate increases, although the rate still remains elevated compared to historical norms.
Although the balance of loans in special servicing was little changed compared to June, the overall balance of CMBS loans outstanding rose about $5 billion to $597.0 billion in July.
Looking at individual property types, the rates for four of the five major property types declined in July, continuing a recent trend. The rate drops were relatively small, with retail’s 29-bp retreat the largest of the five.
The office rate’s 17-bp decrease to 16.21% was the most notable, following its peak at a record high the month prior, according to Trepp. The multifamily rate was the only of the big five property types to rise, climbing 19 basis points to 8.37%.
Read More: CMBS Special Servicing Rate Declines in July; Still Above Historical Norms
