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.