The office vacancy rate in the U.S.A. reaches a 1979 record (19.6%). However commercial property owners must continue to repay the loans taken out. No rent = no repayment = foreclosure = resale at low prices = colossal losses = bankruptcy. The vicious circle!

5 comments

1. Give back the keys, government keeps bank afloat, buy it lower from the same bank. Push the loss onto the taxpayer.

2. AKA the risk of doing business

3. That is capitalism at work. No mercy for mistakes.

4. I can’t wait for the Fed to come in and buy up these loans at *par value*.

5. Thinking there might be some sort of forbearance program for commercial mortgages as a way to keep this from becoming a catastrophe