The article applies to all kinds of loans for property though.
Apartment complexes could also be 50% vacant and still "worth" their original value if the asking rents remain high.
Office buildings that got cleared out after covid, same thing.
Brick and mortar retail are the same.
The article is more of a criticism of how asset values are calculated and loans are managed to avoid foreclosure. Which results in financially valid buildings/loans that are underutilized because the other option is creating economic equilibrium at the cost of lenders and debt holders.
Apartment complexes could also be 50% vacant and still "worth" their original value if the asking rents remain high.
Office buildings that got cleared out after covid, same thing.
Brick and mortar retail are the same.
The article is more of a criticism of how asset values are calculated and loans are managed to avoid foreclosure. Which results in financially valid buildings/loans that are underutilized because the other option is creating economic equilibrium at the cost of lenders and debt holders.