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This is the calm before a litigation storm, according to Sean Gaffney of Crosbie Gliner Schiffman Southard & Swanson. A flood of CRE litigation could be on the way next year. Loans and leases can only be restructured for so long before they result in defaults, which will in turn trigger litigation.

“The coronavirus pandemic has had such pervasive effects on both the commercial and residential real estate markets that the vast majority of landlords, lenders, and business owners have worked in good faith to offer substantial concessions to tenants and borrowers,” Gaffney, a partner at CGS3, tells GlobeSt.com. “However, loans and leases can’t be restructured indefinitely and with the market showing unexpected strength in terms of long-term valuation, there will inevitably be a wave of defaults that will manifest in litigation.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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