Impact of COVID-19 on Financial Reporting in the Real Estate Industry
CRE owners need to consider collectability of rent payments and lease concessions in their financial reporting.
October 15, 2020 | John McCarthy | National Real Estate Investor
As the third quarter comes to a close, the impact of COVID-19 on the U.S. economy continues to be felt. In fact, according to Reuters, the U.S economy suffered its biggest blow since the Great Depression in the second quarter of 2020. In addition, many feel a resurgence of the coronavirus is just ahead of us.
As is often the case with large disruptions to the U.S. economy, the real estate industry, including the hospitality industry, has suffered. Retail and office real estate seem to be the most affected sectors of real estate, while the lack of leisure travel has crippled the business of many hotels. As a result, this has created some hot button financial reporting issues in the real estate industry.
