For commercial property owners, the rent collection issues areonly beginning. Lawyer Mark Leverette expectscommercial tenants will have payment issues through the end of theyear, at least. If a second wave of the pandemic hits, it could belonger.
"Considering the impact that we have experienced in the economyso far, it is expected that most acute and evident rent issues willaffect most business for the remainder of the year," Leverette ofBPM LLP, tells GlobeSt.com. "If there isa second wave of the virus, including another quarantine lockdown,the problem could extent through 2021. The "Wildcard" is the effectof an economic downturn, and that will be an industry-by-industryanalysis suited for a well-versed economist."
Future rent collection trends will largely depend on the comfortof consumers. If consumers return to shops immediately, rentcollection problems will also recovery quickly. "Much of theability to rebound will be micro economy based and related to thereturning foot traffic," says Leverette. "All property types andthe related tenant business forecasts will require insightfulfinancial analysis and an overlay of an economic forecast."
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