The commercial real estate market is a mess, and the dominoes are starting to fall From Michael Snyder at theeconomiccollapseblog.com:
What is going to happen to our banking system as trillions of dollars worth of commercial real estate loans go bad? Many months ago, I warned that the greatest commercial real estate crisis in U.S. history was coming. At the time, a lot of people didn’t believe me and that was fine. As with so many other things, all I needed to do to be proven right was to wait. Sadly, a commercial real estate tsunami is now here, and it appears to be accelerating even faster than many of the experts had been anticipating. Just within the past few weeks, there have been several more high profile defaults, and San Francisco has become the epicenter of this crisis.
On Monday, we learned that Westfield has decided to purposely default on a 558 million dollar loan on the San Francisco Centre mall…
Shopping center giant Westfield is walking away from its San Francisco Centre mall, becoming the latest major company to leave the California city amid rampant crime problems.
Westfield confirmed to FOX Business Monday that the company and partner Brookfield Properties earlier this month stopped making payments on a $558 million loan securing the San Francisco Centre property.
Do you remember in 2008 when millions of Americans that were underwater on their mortgages simply walked away from them?
Well, now the same thing is happening, except that instead of homes we are talking about shopping malls and office buildings.
