2.28.21
The commercial real estate industry has faced significant economic drawbacks during the pandemic with a record number of Americans working from home, and a drop in shopping mall and hotel foot traffic. According to data from real estate firm Jones LaSalle, slightly more than 84 million square feet of office space went unoccupied in 2020. As a result, delinquency rates have risen, the ability to secure new CRE loans has diminished, and borrowing costs are higher. While the market has witnessed a downturn in CRE financing, many are optimistic the industry could see a turnaround with the vaccine rollout underway.