[sharklazer]

Even bigger, most of the buildings are highly leveraged. There literally is no incentive unless the mortgages can be restructured, as the ultimate prices will be forwarded to the renter.

Everyone’s underwater a there isn’t a good solution without massive price decrease (crash) or commercial space demand re-invigorates.

[JumpCrisscross]

> most of the buildings are highly leveraged. There literally is no incentive unless the mortgages can be restructured, as the ultimate prices will be forwarded to the renter.

This is what recessions are useful for. Underwater mortgages still need to be serviced. There might be a deal in providing assistance to the lender in exchange for financing conversion.

[adam_arthur]

It's called default and foreclosure, followed by liquidation by the lender.

The mortgages will fail for most new office space, because the underwriting used unrealistic assumptions about rents.