| Welcome to the first issue of NREI's Distressed Real Estate Strategies newsletter. The COVID-19 pandemic has disrupted every facet of our lives in 2020. For much of March and April commercial real estate activity was on pause, along with just about all other economic activity. Now nations around the world, including the U.S., have embarked on efforts to reopen economies, albeit with social distancing and other health and safety measures in place.
Despite efforts by central banks and governments to help stem the damage, the cataclysmic drops in employment and GDP are taking their toll. Several major retailers have already filed for Chapter 11. With leisure and business travel unlikely to bounce back quickly, the hotel sector is facing a long, slow climb. Corporations are rethinking their office layouts and occupancy levels.
All of these factors and more are giving shape to a new distressed real estate cycle. The years after the Great Recession brought with them a spike in this kind of activity that lasted for years. Things will not play out exactly the same. The volume of outstanding CMBS debt, for example, is not as large as it was last time around.
In this monthly newsletter, NREI will provide updates and analysis as the cycle proceeds. We hope you find it useful as you navigate these challenging times.
David Bodamer, Editorial Director | .jpg)
