To be in special servicing is to live in an upside-down world. When times are good, it’s a bad sign for business. When times are bad, you’re likely riding high.
Little surprise then that it’s been boom times for special servicing.
As the COVID-19 pandemic has shut down economies around the globe, the commercial real estate scene and CMBS have inevitably been impacted. Hotel business in many locales has all but dried up; restaurant and retail tenants have been forced to close their doors or have seen customer traffic slow to a trickle. This downturn has flowed upstream with tenant weakness leading to delinquent or otherwise troubled loans, which, in turn, has led to a dramatic increase in the number of mortgages being transferred to special servicing.
Read more in Commercial Observer.