Older, low-end malls are worth at least 50% and in some cases more than 70% less than they were when mall valuations peaked in late 2016.
- Now, as more than $14 billion of loans backed by these properties comes due in the next 12 months struggling malls are defaulting on their debt.
- About a fifth of all malls financed through commercial mortgage-backed securities are underwater, meaning the properties are worth less than the loans they back.