Office Properties Overtake Retail in Distress, Trouble for San Francisco Mall, Concern for CMBS Office Exposure

Office Properties Overtake Retail in Measure of Distress: Office properties backed by commercial mortgage-backed security loans in special servicing moved sharply higher in September. The number jumped from 612 to 668 in August, a 9.2% surge, according to CoStar data. Offices now make up the largest percentage by property type in special servicing at 28.3%. The sector overtook retail, which also increased but at a smaller percentage. Retail now stands at 27.7% of properties in special servicing.