Jingle Mail for Malls: Even Biggest Landlords Walk from Malls as Stores Go Bankrupt, Refuse to Pay Rent, Mall Values Slashed Brutally. But those Shorting Mall CMBS Made a Killing | Wolf Street

As of July, 16% of the retail property loans packaged into commercial mortgage-backed securities (CMBS) were delinquent. This was down from 18% in June, partly “due to forbearances and other relief assistance,” according to Trepp, which is when loans are marked “current” and are no longer counted as “delinquent,” though borrowers have stopped making payments:

Commercial property mortgages are non-recourse, meaning the borrower can walk away from the loan and turn the property over to the lender, when the value of the property drops so far that it’s not worth making the mortgage payments or refinancing the mortgage when the balloon payment comes due.

This is now happening all the time, and even the biggest landlords are walking away from mall properties.

Jingle Mail for Malls: Even Biggest Landlords Walk from Malls as Stores Go Bankrupt, Refuse to Pay Rent, Mall Values Slashed Brutally. But those Shorting Mall CMBS Made a Killing | Wolf Street