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About $4 billion in value was erased from 118 retail-anchored properties with CMBS debt after reappraisals. Bloomberg | Mar 01, 2021
(Bloomberg) U.S. mall values plunged an average 60% after appraisals in 2020, a sign of more pain to come for retail properties even as the economy emerges from pandemic-enforced lockdowns.
About $4 billion in value was erased from 118 retail-anchored properties with commercial mortgage-backed securities debt after reappraisals triggered by payment delinquencies, defaults or foreclosures, according to data compiled by Bloomberg.
That average drop which reflects the change in value since the debt was originated years ago may underestimate losses when the properties come up for sale because so much retail real estate is in distress. And few buyers are willing to take risks on aging shopping centers as e-commerce continues to grab market share.
‘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.