Will coronavirus permanently change CRE lending?
March 30, 2020 | Jim Dobbs | American Banker
The economic paralysis from the coronavirus outbreak could upend commercial real estate and accelerate loan losses for banks.
High vacancies are hurting hotels, while closed retail outlets are poised to cause headaches for malls and shopping centers. Offices could struggle over the long run as more Americans work remotely and employers decide they can get by with less space.
Those developments are apt to cause near-term credit issues and long-term adjustments in the CRE business.
“There could be a lot of pain,” said Matthew Anderson, a managing director at the data firm Trepp.
