Coronavirus Update: Real Estate
By Daniel Vitulli, National Partner-in-Charge, Real Estate & Marge Filippelli, Office Managing Partner, Roseland, NJ
No one can predict how long this new normal is going to last, but the Commercial Real Estate Industry does not sleep. From developers, architects, and investors, they are all adapting. COVID -19 is changing the way they work throughout the country.
Every asset class has been impacted in some way. Retail and Hotels have been hit, especially hard, starting with shelter-in-place cities and then spreading to more rural areas across the country. Hotel occupancy has plummeted over 80% in the past week. One positive outcome that has come to light is that many hotel owners have donated their hotel rooms to first responders and healthcare workers. Similarly, in northern California, hotels are now taking in the homeless.
Multifamily and Office are being impacted across the country with certain cities mandating a rent freeze for 90 days; and Office landlords are holding their breath to see how many tenants are not going to pay their April rent.
We are in uncharted territory, and commercial real estate will have a significant role to play in helping businesses and the economy meet the challenges in the days to come.
The Marcum LLP Real Estate Group is here to assist during these difficult times.
Coronavirus Resource Center
Have more questions about the impact of the coronavirus on your business? Visit Marcum’s Coronavirus Resource Center for up-to-date information.
