Lots of businesses will simply walk away from commercial properties known as strategic default. They have the cash to pay but won’t.
Pimco-Owned Office Landlord Defaults on $1.7 Billion Mortgage
The office properties owned by Pimco’s Columbia Property Trust range from New York to San Francisco.www.bloomberg.com
Blackstone Defaults on Nordic CMBS as Property Values Wobble
Blackstone Inc. defaulted on a €531 million ($562 million) bond backed by a portfolio of Finnish offices and stores as rising interest rates hit European property values.www.bloomberg.com
Hotels are in a particular bind. The big chains like Marriott have massive property holdings.