CMBS Special Servicing Rate Drops for Ninth Consecutive Month
NEW YORK (PRWEB) April 18, 2019 -- Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its March 2019 CMBS Special Servicing Report. The full report can be accessed here: https://www.trepp.com/thank-you-march-2019-special-servicing-report.
The Trepp CMBS Special Servicing Rate decreased again in March, as it fell seven basis points to 3.42%. This represents the ninth month in a row where the percentage of CMBS loans in special servicing moved lower. The reading has dropped 138 basis points year over year.
“Financial market watchers are always looking for economic cracks in the armor,” said Joe McBride, Trepp’s Director of Applied Data & Research, “and the CMBS sector is no different. That is why we keep our eye on the rate of CMBS loans in special servicing, which is a stop in a loan’s life that often precedes delinquency. It seems inevitable that a portion of loans that were issued after the 2008 financial crisis will enter special servicing as they age. However, the rate is currently at a post-crisis low. It should continue downward as the remaining pre-crisis debt will finally resolve and fall out of the pool.”
The percentage of hotel loans in special servicing increased 11 basis points to 2.16% in March, which was the largest jump of all property sectors. The lodging sector still has the lowest special servicing reading of all five major property segments. Last month's greatest improvement belonged to the office sector as its rate dipped 19 basis points to 3.87%. Industrial loan performance continues to improve as that sector’s servicing rate was down eight basis points to 2.28%.
The percentage of CMBS 2.0+ debt listed as in special servicing was unchanged month over month at 1.11%. CMBS 1.0 debt fared a bit worse in March, as its special servicing rate jumped 40 basis points higher to 48.38%. Much like its overall reading, the special servicing rate for lodging notes posted the largest month-over-month increase among all property sectors in both CMBS 1.0 and 2.0+.
For additional details, such as historical comparisons and analysis on all major property types, download the March 2019 Special Servicing Report: https://www.trepp.com/thank-you-march-2019-special-servicing-report. For daily CMBS commentary, follow @TreppWire on Twitter.
About Trepp
Trepp, LLC, founded in 1979, is the leading provider of information, analytics, and technology to the CMBS, 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 http://www.Trepp.com.
Sean Barrie, Trepp, http://www.trepp.com, 212-754-1010, [email protected]
Share this article