Multifamily, Hospitality CMBS Pose Greatest Refinance Risk in October

Refinancing risk for hard maturities in CMBS has shifted from office to multifamily and hospitality this month, Trepp reported. That’s due to a pair of large single-asset single-borrower loans that are severely impaired, carrying a debt yield below 6.0%: a national multifamily portfolio and a Honolulu resort, which together account for 66.79% of the severely impaired balance. In September, retail represented the largest share of severely impaired loans.

By share of October hard maturities, office still leads at 27.03%, followed by retail at 22.6% and multifamily at 18.66%. In all, 2026 hard maturities total $76.6 billion, exceeding either of the prior two years, with a back-loaded profile as 39% of the loans are due in the fourth quarter.

In total, 19.44% of the cohort balance is in special servicing approaching hard maturity. Unlike September, when office accounted for 74.94% of special-servicing balance, October’s is spread across office (29.71% of all special-servicing balance), retail (29.23%), and multifamily (22.96%), according to Trepp.

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