Omicron or any subsequent severe Covid-19 variants that affect travel or trigger business shutdowns could slow property NOI recovery, Fitch Ratings says in a recent report.
The recovery could also see a drag from continued labor shortages and supply chain issues, particularly in the retail and lodging sectors, Fitch cautioned.
NOI already is being dampened by increased costs, due to higher wages in a strong job market and broad-based building material shortages. Those factors have, as well, increased capex for commercial real estate, potentially weakening CMBS credit profiles, according to Fitch.
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