With most buildings empty or near empty from coast to coast, office investors put a brave face on the future of the sector—"it's still alive," "not going anywhere," "as soon as there is a vaccine we will be back to normal."
But underneath, they are nervous. "It better come back because, we have a lot of money in them." And some tenants are asking for rent concessions and forbearance. This retrenchment is nothing like the ongoing retail debacle, but it's concerning and will eat into NOI. Long-term leases offer protection, but any pending rollovers are fraught.
In short, the virus is having short-term impacts, which could bleed into long-term ones.
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