Unemployment and work-from-home or work-from-anywhere are massively shifting where people want to live.
CBL and Pennsylvania Real Estate Investment Trust were both toast before the Pandemic. The banks are stuck.
“Seated diners” get scarcer again as new Covid cases surge.
Landlords already know this: People are getting more toasted than Wonder Bread.
At the time of securitization into CMBS a few years ago, inflated collateral values led to soothingly low loan-to-value ratios. Then trouble hit.
Commercial real estate is in turmoil, but San Francisco’s glut is dwarfed by the fiascos in Houston and Calgary.
As seen by indicators that have sprung up as a result of the Pandemic.
Landlords and their lenders who’re still thinking work-from-home is just a blip will undergo a reckoning in due time.
With impeccable timing.
Four of the six hotels that REIT Park Hotels & Resorts owns in San Francisco are closed, with convention & business travel at near-zero.