Everybody may be living in the same economic slump but not everybody is facing the same consequences. Whereas individuals bear a stigma – and not to mention a low credit score – whenever they walk away from their home mortgages, different expectations are given commercial owners.

Though many are optimistic that the recession is about to end, commercial real estate, owners of office buildings, industrial sites, and shopping centers are still feeling the negative effects of the past year’s economic downturn. As such, more and more of them in the country are choosing to default on their mortgages and walk away. Even big names, such as Vornado Realty Trust and Mack-Cali Realty Corp. are choosing to default – this is according to the Securities and Exchange Commission loan documents.

In August, commercial mortgages delinquency rate for borrowers in New Jersey properties dramatically climbed to 7.65% as compared to August 2008’s 0.52% This was revealed by Trepp LLC, tracker of loans bundled into CMBS (commercial mortgage-backed securities).

Unlike individual homeowners, though, these commercial borrowers are not to worry about getting back on track once the economy does a U-Turn. Even while walking away from their mortgages, commercial borrowers are unlikely to get a negative credit rating.

Commercial mortgages are always “non-recourse” loans. Lenders are not allowed to go after the borrowers’ assets in the face of defaulting.

As Green Street advisors managing director Michael Knott said, “It’s never a good thing to not fulfill your obligation as a borrower. But if it’s a limited instance with minimal longer-term repercussions and it’s a property that’s deeply underwater, it can be the right business decision to walk away.”

In strategic defaults, commercial owners stop making payments to get servicers to negotiate modified loans. But if a property’s value is way below the mortgage, owners think it best to just cut losses and walk away from the property. More and more commercial owners are now doing this – and they would also stop paying mortgage on the distressed properties.

Newark attorney Scott Tross explains, “It’s the rare person who’s going to do that. Arguably, it’s bad business. Why give away money when you don’t have to?”