Instant Insights Coronavirus and CRE

While there is more prudency, construction projects are still moving through COVID-19 challenges.

"Based on what we know today, I think we will see the employment picture turn negative, but it is doubtful that the impact on growth and the number of jobs lost would be as severe as the Great Recession."

Landlords are leaning on operational data to identify Coronavirus vulnerabilities in their building portfolios.

Owners will be reviewing contracts for agreements outlined, and what contractual rights and duties exist in light of the conditions caused by the spread of the coronavirus.

Three attorneys reported either a pause or a flat out cancellation of a total of seven real estate deals, although more than likely a lot more transactions aren't closing.

"Construction projects always have a 'time for completion' component and many contractual provisions may certainly come into play in any construction project which is affected by labor shortages from the coronavirus."

"In many ways, this could benefit commercial real estate in that rate cuts have made the cost of debt capital cheaper and will cause many to seek more stable investment vehicles and hard assets."

It's critical that lenders are aware of the global effects coronavirus can have, and is potentially already having, on their investments.