According to Trepp, the rate of special servicing for CMBS loans increased by 33 basis points in September, reaching a total of 8.79%. This marks the ninth consecutive monthly increase and is the second-largest uptick seen this year.
All five major property types experienced an increase in distress, with four out of five seeing at least a 30 basis point rise. The office sector saw the largest jump at 67 bps, bringing its overall rate to 12.58%.
In fact, over the past four months alone, there has been a significant increase of more than 200 bps in office distress. This trend is expected to continue as more than half of all new transfers to special servicing occurred within this sector during September.
The multifamily sector also saw an increase in its special servicing rate by36 bps to reach a level above6% forthe first timein nearly nine years.In addition,the retail and lodging sectors both reached near two-year highs with ratesof11.22%and7.84%, respectively.However,the industrial CMBSspecialservicingrateonlyincreasedby11bpsinSeptemberandremainsbelow1%.
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