Commercial Landlords Struggling to Make Mortgage Payments

Despite news of the nation’s economy gradually recovering from the pandemic, “many commercial landlords are struggling to make mortgage payments.” Recent news has been delivering announcements of some prominent property owners defaulting on loans — a number that seems to be increasing at a quickening pace. Initial news of Brookfield defaulting on two major Downtown Los Angeles properties was released in mid-February, appearing to create a domino effect as news of further defaults continued to surface; and among the landlords reported, “some of the most respected and most well-capitalized names in commercial real estate.” Challenges within the office market have become more pronounced since what had been viewed as a “temporary measure forced by the pandemic,” remote work has outlived the pandemic and remains ongoing beyond what was expected, leaving office building owners to address “the unique and unprecedented challenges currently facing” the asset class.