So far, the apartment market has held up relatively well after COVID-19 hit. But Jake Reiter, president of Verde Capital, does see some issues on the horizon.
In higher-end, mixed-use apartments, the retail and hospitality portions could "pull-down" building performance, according to Reiter. "The hotel piece, the WeWork piece or the retail piece could be distressed."
With some smaller apartments, the retail owner could also be the building owner. "It could be a travel agency [on the first floor]," Reiter says. "The owner of the building may also own the business. If that business is closed and there is not a huge amount of multifamily upstairs, the closing of the retail is not immaterial to the overall economics of the building," Reiter says.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
