Consumer Nation
- Six Pack: Beer Buzz of the Week
- Time for Flash Sales to Adapt or Die
- What Flash Sites Are Suggesting About Consumers
- Building a Beer Brand, One 'Like' at a Time
- The Six Pack: Beer Buzz of the Week
- Wal-Mart's Strong Earnings Overshadow Bribery Allegations
- Lesson for JCPenney: Consumers Are Addicted to Deals
- Fuel Prices Trump Unemployment as Risk to Retailers: Study
- The Hot Beauty Product You Never Heard Of
- The Six Pack: Beer Buzz of the Week
RSS FEED
MOST SHARED
- Euro Rallies After Pro-Bailout Parties Gain in Opinion Polls
- China Industrial Profits Down on Slowing Growth
- IMF Chief Lagarde: Little Sympathy for Greece
- BOJ Eased to Ensure Recovery, Won't Act 'Automatically'
- Renesas Sinks 11% as It Braces for Costly Restructuring
- Gome Slumps to 3-Half Year Low After Poor Earnings
- Spain May Recapitalize Bankia With Government Debt
- Billionaire Kwok Brothers Renew Bail in HK Graft Probe
- Japan's Nomura Linked to Another Insider Trading Case
- Europe May Be Unprepared for Greece Exit: Official
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Euro Rallies as Greece's Pro-Bailout Parties Gain Favor
- Oil May Slip to Mid-$80s as Europe Weighs: Survey
- Europe Unprepared For Greek Exit: Belgian Official
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- Spain May Recapitalize Bankia With Government Debt
- How Weinstein, Hedge Funds Outsmarted JPMorgan
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- Economists Can't Solve Europe's Crisis
- IMF Chief Lagarde: Little Sympathy for Greece
Mall Bankruptcy Is New Domino In Commercial Property
Text Size 
News Editor
No doubt General Growth Properties' bankruptcy filing will have far-reaching implications for the commercial real estate market.
 |
Photo by: Phil Guest The Grande Canal Shoppes |
The bankruptcy, which is said to be the largest real-estate failure in U.S. history, will further pressure already stressed property values for U.S. malls and mall mortgages.
It's also likely to lead to speed up consolidation in the mall industry, with companies such as Simon Property [SPG
Loading...
()
], Westfield Group [WFD
Loading...
()
] and Taubman Centers [TCO
Loading...
()
] emerging as potential winners, that is, if they can come up with the cash to pick-up prime pieces of General Growth's portfolio.
The company does have some choice pieces of real estate among its holdings, including the Ala Moana Center in Honolulu, Water Tower Place in Chicago, and the Grand Canal Shoppes at the Venetian in Las Vegas.
But if you listen to General Growth [GGP
Loading...
()
], the proposition of raising money for these deals might not be easy. The company claims it is the latest victim of the credit crunch, and it sees looming problems for other commercial real estate because of constraints in the credit markets.
That also means, the mall operator could have a tough time using asset sales to pay off its creditors.
And so the domino effect begins with effects for other commercial property owners as well as for banks who loaned money to these property owners such as Citigroup [C
Loading...
()
], Deutsche Bank [DB
Loading...
()
] and Goldman Sachs [GS
Loading...
()
], which are among General Growth's creditors.
Data is a real-time snapshot *Data is delayed at least 15 minutes
