Real estate investors are preparing for an onslaught of commercial real estate buying opportunities in the wake of the coronavirus pandemic.
Unlike the last recession where tenants still had to pay rent, record unemployment rates and an almost complete economic shut down have nearly stalled rent payments, putting commercial landlords in a precarious situation.
An economic shutdown as a result of a pandemic is something that no one could have predicted and many businesses are unsure if they will survive.
“As of mid-May, loan servicers representing 70 percent of the commercial mortgage-backed securities reported that 19.3 percent of hotel loans and 10 percent of retail loans were more than 30 days late, according to Trepp. The end of grace periods could significantly increase those percentages, Trepp noted.”