There was more troubling data from the commercial real estate industry: Trepp Inc. reported its CMBS Special Servicing Rate climbed 31 basis points in June to 6.42%, marking the fifth increase in a row and the third largest this year.
The rate was at 5.17% six months earlier and 4.91% one year ago. Driving this new upswing was the 81-basis point increase for the office sector from May to 7.24%, which is the highest office rate since 2017. The office sector’s special servicing rate has soared by 323 basis points since the beginning of the year.
“Maturity defaults in the office sector are placing additional stress on special servicers as the appetite for refinancing wanes,” said Jack LaForge, associate research manager at Trepp. “An additional $2 billion in loans were transferred to the special servicer in June, and the office sector accounted for nearly $1.1 billion of that (55.6%).”
;
