The special service rate on commercial mortgage-backed securities reached 10.04% in August, an increase of 55 basis points from July, according to a report from Trepp.
The increase was primarily related to the retail and accommodation industries and continued a steady rise in the rate that began in March. The retail special service rate was 17.3%, down from 16.0% the month before. The special accommodation service rate was 25%, up from 24.3% in July. The accommodation rate was the second highest increase among all types of property.
Earlier this month, Trepp reported that the CMBS delinquency rate continued to decline, falling to 9.02% in August.
“The difference in the trend of delinquency and special service rates is based on the fact that, even though abstentions move the loan status from defaulting to current, loans, if stressed, continue to be especially stressful. processed, ”the report says. “Considering that the forbearance agreement generally offers a short-term respite, [the] special service rates seem[s] to be a better representative of the current state of distress in the CMBS universe.
Special service rates in the industrial (1.21%), multi-family (2.56%) and office (2.93%) sectors remained generally stable, according to the report.
The special service rate for CMBS 2.0+ tickets rose to 9.12% in August, up 58 basis points, according to the Trepp report. The outstanding balance on these loans increased by about $ 3.2 billion to $ 48.1 billion.
Among heritage properties, or CMBS 1.0, the special services rate increased six basis points to 46.81%. The outstanding balance on these loans fell to $ 6.1 billion in August, from $ 6.2 billion in July.
“The number of loans newly transferred to the special service slowed in August, with a total of 170 loans sent to the special service against 363 the previous month,” the report said.
