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. Â
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%.
The post CMBS Special Servicing Rate Declines in July; Still Above Historical Norms appeared first on Connect CRE.
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