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U.S. Bankruptcy Tracker: Real Estate Faces ‘Existential Crisis’

  • Retail and office properties are reeling from the pandemic
  • Pace of Chapter 11 filings slowed amid easy access to funds

Cheap funding costs have extended a lifeline to many troubled companies, slowing the pace of U.S. bankruptcy filings, but shops, offices and hotels have been particularly vulnerable to the pandemic this month.

The real estate industry is “facing an existential crisis of what’s next,” said Sarah Borders, a partner focused on restructuring at law firm King & Spalding. She expects pressure to remain on retail as more shopping happens online and says office real estate will suffer as employees delay a return to work.