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Mall REIT Washington Prime Group Is Preparing for Bankruptcy Filing
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An Eye-Popping Decline - US Mall Values Crash By A Record 60% In 2020
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‘Purgatory’ Grips $146 Billion of Distressed Commercial Property The pandemic helped push about $146 billion of commercial real estate into distress or serious risk of bankruptcy last year, according to Real Capital Analytics. Bloomberg | Feb 25, 2021
(Bloomberg) Good news about vaccines and rallying financial markets suggest the end of the coronavirus pandemic is in sight, but the worst may still be to come for commercial properties.
The coronavirus outbreak helped push about $146 billion of commercial real estate into distress, serious risk of bankruptcy or default at the end of last year, concentrated in hotels and retail, according to data compiled by Real Capital Analytics, a commercial real estate data firm.
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Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work!
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What happened
GameStop and
AMC Entertainment Holdings were sharply higher on Friday.
However, some of the mall operators that were also caught in the short-squeeze action are not. Mall real estate investment trusts, or REITs,
Seritage Growth Properties (NYSE:SRG),
Pennsylvania Real Estate Investment Trust (NYSE:PEI) were lower after spiking earlier in the week. At approximately 2:30 p.m. EST, the three mall REITs were down by 17%, 13%, and 10%, respectively.
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