The Bluff in Playa Vista with Edward Minksoff and the Mandarin Oriental Residences in Beverly Hills with Michael Shvo (Getty, LoopNet, Mandarin Oriental Residences, SHVO)

From dwindling mall occupancy at Santa Monica Place to downsizing office tenants on Silicon Beach, commercial borrowers found themselves in hot water as their loans came due in 2024.

Landlords in Los Angeles and Orange counties started the year with a bleak outlook: Some $21 billion worth of commercial mortgage-backed security loans and collateralized loan obligations tied to properties in the two counties came due in 2024. And more than half of those loans were already on a special servicing watchlist at the start of the year.

More than one in 10 CMBS loans tied to office properties across the country was delinquent by the end of 2024, according to a report by Trepp. Southern California did not buck the trend.