Philadelphia Among Top Ten Metros with Most Active, Anchored-Retail CMBS Debt
Malls across the country are continuing to struggle as many retailers continue to shift away from brick-and-mortar to strengthen their online presence. In as they leave vacant space, they raise fears about the future of this American institution. Ashley Fahey covered one of its most telling bellwethers, commercial mortgage-backed securities (CMBS) debt, for the Philadelphia Business Journal.
Many owners are trying to address the issue by adding new uses for the malls — such as mixed-use development — it is still unclear if this will help drive sales up for retailers.
With malls among the biggest employers and taxpayers in many communities, their closures or devaluations would have a substantial ripple effect on the local economies in which they are located.
This could especially affect the Philadelphia region, as it ranked ninth among metro areas with the most active, anchored-retail CMBS debt — as well as the amount of that debt in potential distress — as of September 30.
There are a total of 96 loans in Philadelphia Metropolitan Area, with a loan balance of $2.238 billion. Out of those, 23 loans are considered to be in distress, with a loan balance of $472 million.
Read more about the issue in the Philadelphia Business Journal.
Connect With Your Community
Subscribe for stories that matter!
"*" indicates required fields