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A flood of distressed assets is headed for the market. There has been some debate about the future market for distressed assets as a result of the pandemic. Some experts have argued that better underwriting will help property owners hold on to properties through the pandemic. However, as the public health crisis wears on, property owners are left with few options to cope with income loss. The dynamic has promised an increase in distressed assets.

“If you look at assets that were impacted by COVID, like hospitality, which has been devastated, retail and office, there is true distress in the commercial real estate sector as more and more time passes where there is impact to the economy,” Pat Jackson, CEO of Sabal Capital Partners, tells GlobeSt.com. Securitized loans, for example, don’t have the option to be extended after a certain period of time and they will go into special servicing. It will start the drumbeat of foreclosures.”

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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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