The Trepp CMBS Special Servicing Rate rose 45 basis points in February 2025 to 10.32%. The increase followed the rate’s slight decline in January, which represented its first drop in more than a year.

Trepp cited two factors behind February’s sizable increase in the overall rate. First, the net balance of loans in special servicing increased by $1.8 billion, and second, the overall balance of loans outstanding fell by $8.8 billion.  “Thus, a comparatively larger numerator divided by a comparatively smaller denominator led to the substantial jump in the monthly rate,” wrote Trepp’s Vivek Denkanikotte.

Two property types contributed most heavily to the increase in the overall rate. The retail rate climbed 59 bps to 11.26% following a 100-bp drop the month prior. And the office rate rose 108 bps to 16.19%, marking yet another 25-year high.

Additionally, the mixed-use rate rose 33 bps to 13.04%, clearing the 13% mark for the first time since early 2013. Otherwise, none of the remaining property types changed by more than 15 bps in either direction, according to Trepp.

Marquette Companies has named Trevor Ryan partner and president of Marquette Companies, while Jim Cunningham has been appointed partner and president of Marquette Management. Additionally, Jason Tennenbaum has joined the organization as chief financial officer.

Colliers announced that veteran investment sales broker Tom O’Brien has joined Colliers as a vice chair, partnering with Colliers’ Investment Services Group in Minneapolis-St. Paul. With his arrival, Colliers adds one of the market’s most well-known and experienced investment sales professionals to its business. 

Global law firm Greenberg Traurig, LLP has expanded its real estate capabilities with the addition of Daniel J. Elrod as a shareholder in its Chicago office. Elrod joins the firm from Katten Muchin Rosenman LLP, and with more than a dozen years of legal experience, he represents debt funds, life insurance companies, and institutional lenders in a wide range of commercial real estate transactions nationwide.

Lee & Associates has negotiated a 30,300-square-foot new lease at 20 Presidential Drive in Roselle, Illinois. Jeff Janda, SIOR and Mike Plumb, principals at Lee & Associates’ Illinois office, represented Tripar International, Inc, who owns and occupies the rest of the 63,978-square-foot industrial building. David Haigh of NAI Hiffman represented the tenant, Rieder NA, a manufacturer of concrete facades.  

Chicago Title Land Trust Company has officially rebranded as The Land Trust Company. This change reflects the company’s expansion beyond Chicago, with a growing presence in Indiana and Florida and plans for nationwide growth.

The Trepp CMBS Delinquency rate inched up in February, rising five basis points overall to 4.71%. Year over year, the overall U.S. CMBS delinquency rate is up 159 bps.

In the closely watched office segment, delinquencies rose 33 bps in February to 6.63%. The month-over-month increase is roughly in line with the average 37-bp monthly gain for the sector over the past 12 months, according to Trepp.

The retail segment posted the largest decline of all property sectors for the month, dropping 24 bps to 6.03%. That said, retail CMBS still represents the second-highest delinquency rate, compared to 5.45% for lodging, 1.81% for multifamily and 0.43% for industrial.

If loans that are beyond their maturity date but current on interest were included, the delinquency rate would be 5.69%, up seven bps from January. The percentage of loans that are 30 days delinquent is 0.30%, up six bps for the month.

Trepp said the all-time high for the CMBS delinquency rate was 10.34%, registered in July 2012. The COVID-19 high was 10.32% in June 2020.

Jasmine Kilman is Content Director of Connect Commercial Real Estate, covering Chicago and greater Chicagoland, the Midwest, Seattle, and the Pacific Northwest. She covers industry trends, transaction deals, market research, and produces daily news stories.
With experience in marketing and communications for academic nonprofits and corporate clients, including Hearst Media, Hilton, and Coldwell Banker, Kilman has written about commercial real estate, environmental, social, and corporate governance (ESG), technology, healthcare, and philanthropy. She was born and raised in California and graduated with a degree in public relations. In her spare time, Kilman enjoys hiking and traveling to new locations with her family.