Is The Commercial Real Estate Sky Falling?


There’s an article about the state of commercial real estate industry wherever you look. Tenants, property owners, and lenders are facing a changing landscape of office space. COVID-19 changed the traditional work environment, tenants need less space and want better perks in the building, and the value of office buildings has dropped dramatically in many places. If you’re a borrower in this economy (or you represent one), you’re facing several challenges unique to the current state of the commercial real estate industry. Factors contributing to borrower concerns include cash flow issues, decreased property values, major tenant(s) failing to renew, and loan maturity quickly approaching.