As of April 2nd, at least 2,600 commercial real estate borrowers have already touched base with mortgage servicers about potential debt relief on more than $49 billion in loans. More than 75% of those inquiries were for hotels and retail, according to Fitch Ratings.
- Dig Deeper: Major retailers, including chains Subway, Urban Outfitters and Mattress Firm, have told landlords they either cannot pay rent or need reductions. A stress test conducted by Goldman Sachs found that department stores such as Kohl’s, Nordstrom and Macy’s could run out of cash within a month.
- Worth Noting: Just 69% of U.S apartment renters paid their rent by April 5th, compared with 81% who paid by March 5th, providing an early look at how bad things could get if job cuts continue and households blow through savings, Bloomberg noted. The number in NYC was around 90%.
- Local angle: Brokers’ confidence in NYC’s real estate market hit a record low as the coronavirus pandemic brought deals to a grinding halt, REBNY found. Broker confidence was 3.72 out of 10 so far in the first quarter of 2020, a 46 percent decrease since the fourth quarter of 2019 and the lowest amount since REBNY started the measure in 2012, CO reported.
- Jerome Powell is doing his part: The Federal Reserve on Thursday announced a broad, $2.3 trillion effort to bolster local governments and small and mid-sized businesses, the latest in an expanding suite of programs meant to keep the U.S. economy intact. And while landlords may not directly benefit from these actions, more small and midsize tenants will receive lending support, which will flow to property owners, Reuters noted.