The Trepp Special Servicing Rate increased in September. The recent surge could be attributed mainly to an increase in the retail and lodging special servicing rates. Both the lodging and retail CMBS special servicing rates were the highest reported on record.
NEW YORK, Oct. 6, 2020 /PRNewswire-PRWeb/ -- Trepp, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released the September 2020 U.S. CMBS Special Servicing Report, noting that the rates for lodging and retail have hit the highest levels recorded.
The report revealed that the CMBS special servicing rate saw another increase in September, and is now the highest rate recorded since May 2013. The full report can be accessed here: https://www.trepp.com/instantly-access-cmbs-special-servicing-report-september-2020.
CMBS special servicing rates have consistently increased since March, climbing up to 10.48% in September from 2.83% in March. The retail special servicing rate clocked in at 18.32% in September, up from 5.31% in March. The lodging special servicing rate came in at 26.04%, up from 2.27% in March.
"The difference in the delinquency and special servicing rate trend is based on the fact that while forbearances switch the loan status from delinquent to current, the loans, if stressed, still continue to be specially serviced," said Jyoti Yadav, Trepp Research Analyst.
"Considering that a forbearance agreement typically provides short-term respite, the special servicing rate seems to be a better representative of the current state of distress in the CMBS universe," Yadav says.
Going forward, it is likely that the special servicing rate will continue to increase in the coming months. As depicted in the report, the special servicing rate is logging the same increasing trend as witnessed in 2009, during the last financial crisis.
For additional details, such as historical comparisons, analysis on all major property types, and more, download Trepp's September 2020 CMBS Special Servicing Report: https://www.trepp.com/instantly-access-cmbs-special-servicing-report-september-2020.
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Trepp, founded in 1979, is the leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the web-based tools and insight they need to increase their operational efficiencies, information transparency, and investment performance. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp is wholly-owned by Daily Mail and General Trust (DMGT). For more information, visit https://www.Trepp.com.