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Mall Values Plunge 60% After Reappraisals Triggered by Bad Debt
- Landlords looking to walk away from some struggling centers
- Pandemic shutdowns hurt properties with pre-existing problems
Photographer: Luke Sharrett/Bloomberg
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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.