Opportunistic investors are already actively seeking distressed opportunities, but after eight months in the pandemic, many more distressed deals are likely to hit the market next year. This new wave of COVID-19 cases and new stay-at-home orders are only putting more pressure on businesses and solidifying what will become a thriving investment industry. Ready and well-positioned investors will be able to buy assets for pennies on the dollar, according to Peter Ballance at Stroock & Stroock & Lavan.

"In the short term, as the pandemic drags out and new protective orders are issued by state governments, many offices, restaurants, hotels, stores and other commercial spaces where people spend their time and/or money will remain either closed, or mostly empty," Ballance, a partner at the firm, tells Globest.com. "As a result, many commercial properties are facing a combination of tenant defaults, no new demand for space and no readily available capital.  For property owners that are unable to identify solutions to keep their assets afloat, defaults under their real estate financing are inevitable."

These are opportunities stemming from the impact of stay-at-home orders and reduced activity, but permanent changes will also create distressed asset opportunities further into the future. "A longer-term change to the market will likely result from the pandemic driven acceptance of the work-from-home model," says Ballance. "It has become clear that almost anyone who gets their job done with a computer and a phone can work anywhere, not just an office in a commercial building."