Learn about TreppCRE, a dynamic new product offering that gives users access to commercial property data on more than 5 million properties

«  View All Posts

CMBS | CMBS Delinquencies | Special Servicing | CMBS Delinquency Rate | CMBS 2.0 | CMBS 1.0 | CMBS News

CMBS Special Servicing Rate Posts Largest Improvement Since Onset of Covid Pandemic

May 6th, 2021 | 4 min. read

Print/Save as PDF

Catherine LiuThe Trepp CMBS Special Servicing Rate declined by 40 basis points in April to 9.02% – the largest improvement in the monthly reading during the coronavirus market crisis.

This is the seventh monthly decrease in that reading since September 2020, when the rate reached a post-Great Financial Crisis (GFC) peak of 10.48%. With federal plans underway to make vaccinations more widely available in the US and states taking steps to ease lockdown restrictions even further, loan “cures” and special servicing removals should continue at a measurable pace in the coming months.

By property type, the percentage of loans with the special servicer was relatively unchanged month over month, except for that of lodging and retail, which registered a 233 and 37 basis point reduction in April. Roughly 21.83% of lodging loans and 15.86% of retail loans were reported to be in special servicing in April.

This has coincided with the upward movement in the watchlist rate as many loans removed from special servicing have been added to servicer watchlist. The percentage of loans on servicer watchlist rose for the fourth consecutive month to 25.66%. Lodging (up 3.35% to 60.49%), multifamily (up 2.39% to 25.72%), and retail (up 1.19% to 22.56%) showed the largest increases in the rate in April.

The volume of loans exiting special servicing remains above the loan balance that has been transferred in, which has helped to put downward pressure on the overall reading. Nearly $3.0 billion in CMBS loans had returned to the master servicer last month, according to April remittance data, while about $1.1 billion was newly added to the special servicer list. 

To see special servicing rates by property type and more, download our complimentary research.

Instantly Access Our Latest Special Servicing Report

The information provided is based on information generally available to the public from sources believed to be reliable.