[jedberg]

Their risk is when they can't find a tenant or a tenant quits mid-lease. Then they owe the bank from their pocket. Commercial real estate is much more susceptible to the economy. Bad economy or good, people need a place to live. But in a bad economy, businesses just close up, declare bankruptcy, and leave.

[analyte123]

When "they" owe the bank in a bad economy, "they" is a disposable corporate entity, not a normal person who might have to suffer consequences for their reckless behavior with debt. The actual people involved spent the last decade stuffing their pockets with rents and setting up asset protection strategies.