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‘Purgatory’ Grips $146 Billion of Distressed Commercial Property

  • The sector has $2.3 trillion of debt due within five years
  • Delinquency rates are soaring close to 20% for hotels
Aerial view of New York City skyline at sunset RF

Photographer: Marco Bottigelli/Moment/Getty Images

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Good news about vaccines and rallying financial markets suggest the end of the coronavirus pandemic is in sight, but the worst may still be to come for commercial properties.

The coronavirus outbreak helped push about $146 billion of commercial real estate into distress, serious risk of bankruptcy or default at the end of last year, concentrated in hotels and retail, according to data compiled by Real Capital Analytics, a commercial real estate data firm.