Everywhere you turn, there is media coverage—and rightfully so—of how small business and individual tenants are negatively affected by the pandemic.  Consequently, when viewing the commercial real estate property owner-tenant relationship, many insist that the property owners should bear the significant brunt of the pandemic's economic downside.

This focus on property owners is fueled by the inaccurate assumption that landlords are fundamentally large corporate entities with strong balance sheets that can absorb these losses and can work with their lenders to restructure debt more easily than small business owners and individuals. Such assertions are far from the truth. Pension funds own a significant portion of the country's commercial properties, and CalSTRS and CalPERS, the country's two largest pension funds, own an aggregate of properties worth in excess of $65 billion. Many of the beneficiaries of pension funds are working people, many of whom may be out of jobs, as well as retirees who rely on monthly payments from pension funds to survive. CalSTRS and CalPERS provide pension benefits to retired California teachers, firefighters, police, and other public and government employees. 

REITs own commercial properties that are valued at over $3 trillion, including 25% of the Class-A office space in the country. REITs are directly or indirectly owned by individual investors who hold REIT shares in their brokerage accounts, 401(k) plans, and IRAs. It is estimated that nearly 87 million Americans own REIT stock in their retirement and other investment funds, and roughly 46% of California households own REIT stocks.