CLNC - Commercial real estate reckoning looms in 2021 for $430B in debt set to mature
As the pandemic spread in 2020, thousands of U.S. stores, restaurants, and gyms closed temporarily or permanently, hotel rooms went unused, and office workers stayed at home. That put pressure on landlords to stay current on mortgages with many tenants unable to make rent.With ~$430B in commercial and multifamily real estate debt maturing next year, lenders and borrowers will have to come to terms on the properties' values in a post-COVID-19 world.Property owners who have fallen behind on debt payments will have to put more money into their properties, sell a fire-sale prices, or turn their property back to the bank next year."There’s a lot of collateral damage that’s going to be hanging around for a while," Wendy Silverstein, a former executive with Vornado and WeWork who started a restructuring and advisory firm, told Bloomberg.The repercussions will spread far beyond the real estate industry. Commercial property taxes provide significant revenue
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Commercial real estate reckoning looms in 2021 for $430B in debt set to mature