‘Purgatory’ Grips $146 Billion of Distressed Commercial Property The pandemic helped push about $146 billion of commercial real estate into distress or serious risk of bankruptcy last year, according to Real Capital Analytics. Bloomberg | Feb 25, 2021
(Bloomberg) Good news about vaccines and rallying financial markets suggest the end of the coronavirus pandemic is in sight, but the worst may still be to come for commercial properties.
The coronavirus outbreak helped push about $146 billion of commercial real estate into distress, serious risk of bankruptcy or default at the end of last year, concentrated in hotels and retail, according to data compiled by Real Capital Analytics, a commercial real estate data firm.
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Congress inched closer Friday to striking a deal on another round of coronavirus economic relief, but one of the hotel industry’s requested provisions was left out.
Democrats and Republicans appeared ready this week to compromise on a roughly $900 billion coronavirus relief bill that would reopen the Paycheck Protection Program of government-backed small business loans, send a second round of direct payments to most Americans, and extend unemployment benefits.
While the hotel industry lobbied for further PPP funding since the initial program expired at the end of June, another one of its requests liability protection against coronavirus exposure claims is not expected to be included in the emerging deal. But hospitality lawyers say this isn’t a massive slight to the industry.