NYC’s commercial real estate will get worse before it gets better
Some properties cannot avoid foreclosure, he added. In the second quarter of 2021, banks will acquire and trade distressed properties at prices that are beneficial to investors.
“You will do that with numbers that make sense [at] Prices at which people can transact, “he said,” not the crazy inflated prices we’ve seen before. “
Most of these properties are hotels and mixed-use properties that include retail or restaurant space. The crime and special service rates for retail in Manhattan rose to an all-time high of 16.78% and 17.55% analysis company Trepp, according to data from as early as August.
According to experts, hotels will not recover until 2025. “We all know the industry is the hardest hit industry,” said Citron. This includes hotels, restaurants and entertainment.
Nevertheless, according to the landlords, the prospects are not as bad as in retail. “I’d rather be in the hotel business than retail, but it’s hard to say,” said Marty Burger, general manager of Silverstein Properties.
The stationary retail trade died before the pandemic, it said. The pandemic has only accelerated this process.
Retailers are fighting their landlords in court over missed rents, some of which owe millions. Manhattan shopping mall owners, including Related Cos., Have filed lawsuits against tenants at The Shops on Columbus Circle for over $ 7 million in arrears in rent.
It’s hard to say whether the judges will rule in favor of landlords or tenants given the current times, but given the damage that has been done to retailers, retailers can’t pay if they don’t have money, said Trevor Adler, real estate attorney at Stroock & Stroock & Lavan.