Gurnee Mills is a sprawling, 1.93 million-square-foot outlet mall in Gurnee, Illinois. It underwent a $6 million renovation in 2018, and managed, in recent years, to replace its departed anchor stores, like TJ Maxx. In 2019, citing a rise in mall vacancies and a decline in cash flow, the credit rating agency Fitch Ratings downgraded its outlook. In 2008, the marketplace for mortgage-backed securities of all types collapsed (the default rate on commercial mortgages was a fraction of the default rate on sub-prime mortgages—1.2% versus 40%). There was widespread fear that credit rating agencies had failed to properly rate debt securities. The trouble is many malls and hotels may struggle to pay off their loans under current economic conditions.
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