ABSTRACT

COVID-19 and the Future of Commercial Real Estate Finance [October 19, 2020]   [open pdf - 1MB]

From the Document: "Commercial real estate (CRE) refers to a broad range of properties, including office buildings, hotels, retail storefronts, restaurants, hospitals, stadiums, schools, and apartments. The market for CRE financing is over $3 trillion. [...] Because so many different sectors of the economy participate in the CRE market, economic conditions often can have disparate effects on different subsectors. [...] Future economic conditions are uncertain. The impacts of the pandemic may result in a substantially changed world for CRE, as lenders structure deals and offer credit to commercial borrowers in new ways to address risks associated with changing social preferences. Further, if the economic downturn from the pandemic were to become protracted, even though failed CRE can enter private-sector bankruptcy to resolve bad debts, Congress could consider intervening and providing financial assistance as it has in other troubled sectors."

Report Number:
CRS Report for Congress, R46572
Author:
Publisher:
Date:
2020-10-19
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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