Watching the Real-Estate Bust

The pandemic severely affected mall retailers. The mall’s occupancy plummeted from 96% to below 50%. Owners Unibail-Rodamco-Westfield and Brookfield Properties ceased mortgage payments, and by August, major brands like Nordstrom exited. The mall’s declining foot traffic led Westfield to revert the property to the lender. Surging interest rates negatively impacted real estate values, and tenants like Affirm Holdings, facing increased borrowing costs, considered breaking leases. The future of San Francisco’s commercial property market remains uncertain.