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As Restaurant Chains Fold, CRE Faces New Challenges

Landlords will have to modify both their marketing and underwriting practices.

By Philippa Maister | November 22, 2024 at 06:18 AM

Shifts in the places customers choose for eating out or ordering food means many chains may face a choice of adapt or die — with significant impacts for CRE.

Sources cited in a paper by Trepp analyst Vivek Denkanikotte contended that “restaurant chains and operators this year are on track to declare the most bankruptcies in decades outside of 2020.” The result, he added, is that suburban retail centers are finding it more difficult to secure restaurant tenants with strong credits.

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