The overall Trepp CMBS special servicing rate rose 33 basis points in August 2026 to 11.42%, reversing July’s decline and reaching its highest level since February 2013. A single $1.1-billion Hollywood studio-and-office loan, also the month’s largest new transfer to special servicing, drove mixed-use up 154 bps to 13.47%, Trepp reported.
Office rose 32 bps to 16.90% on large CBD loan transfers, and retail also rose 32 bps to 13.60% on large mall and shopping center transfers. Lodging added 11 bps to reach 8.74%. Industrial and multifamily were the only property types to improve, falling seven bps to 1.27% and three bps to 8.37%, respectively.
In all, the month’s transfers to special servicing totaled $3.16 billion across 32 whole loans, nearly double July’s. Transfers were concentrated in office. Several of the largest transfers ran out extension options, Trepp reported. Loans that cured, were modified and returned, or paid off were far smaller in aggregate, at roughly $500.7 million across 14 whole loans.
Pictured: The CMBS loan on the Hyatt Regency New Orleans was among the large transfers to special servicing during August.
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