This corridor is the local face of a national problem -- one that is troubling in Cleveland but more severe in overbuilt markets like Las Vegas and Miami and battered cities such as Detroit. Across the country, a wave of office buildings, shopping centers, hotels, apartment properties and industrial facilities could be returned to lenders or foreclosed upon during the next few years.
Some of these buildings are obsolete. Others are losing tenants as companies remake themselves to emerge from the recession. Some properties are carrying heavy debt loads from more freewheeling days. Others never succumbed to excess, but their owners can't refinance loans or find new money in a more conservative lending environment.
Was common to hand out interest only 5 year loans with balloon payments at end, which borrowers were fine with because they could always refinance. Until they can't.