Peter E. Fisch, left, and Salvatore Gogliormella. Courtesy photos Real Estate Loan Workouts
The COVID-19 pandemic continues to place enormous stress on the commercial real estate industry, with an increasing number of commercial real estate loans facing borrower defaults. In their Transactional Real Estate column, Peter Fisch and Salvatore Gogliormella discuss the choices lenders in these default scenarios face.
October 13, 2020 at 10:04 AM
10 minute read
As the COVID-19 pandemic continues to place enormous stress on the commercial real estate industry—with hotels and shopping centers shuttered or experiencing depressed occupancy, urban apartments losing tenants and the lack of federal stimulus—an increasing number of commercial real estate loans is facing current or impending borrower defaults. The second quarter of 2020 reportedly saw a 65% increase in the overall delinquency rate for commercial real estate loans over the prior quarter, and upwards of $26 billion in commercial real estate loans have been downgraded to a rating of CCC or lower by a credit agency as of the beginning of September.
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