A few short months ago, it appeared that lenders were less inclined to work out struggling loans for retail properties compared with equally troubled hotel loans.
This became clear late last year when REIS examined servicer commentaries and found that there was a clear leaning towards forbearance on lodging properties versus a leaning towards foreclosure for retail. The theory was that lenders viewed hotel properties' business case as solid—they had just been blindsided by the pandemic—while the retail model needed a rethink.
But now retail loan resolutions are strong, which points to increased lender confidence in the asset class.
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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.
