Retail has had its challenges and conventional wisdom for some time has said that retail in general faces some issues and malls specifically. But things may not be as obvious and clear as sometimes thought.
A new report from Trepp's Manus Clancy said, "a glimmer of hope has emerged recently with some positive indicators appearing within [Trepp's] servicer watchlist and special servicer comments," even as "headlines and results for commercial mortgage-backed securities (CMBS) mall loans have been consistently negative" for years.
Even back in March of this year, some mall foot traffic reports from Placer.ai suggested a more nuanced picture for the sector. By July, malls were seeing longer visitor stays, even if consumers seemed hesitant to spend money. But then, more nuance, with regional mall values dropping by more than 70% by the summer, although much of that was for older, low-end malls.
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