Morris Anderson’s Dan Dooley was quoted in the article “Corporate Bankruptcies Slow Again in Early April As Companies Find Ample Support”. Read the excerpt below and read the full article here.
Real estate bankruptcies have so far lagged other industries during the pandemic, but a variety of factors continue to pressure the sector. Some retail tenants struggle to pay rents on commercial properties — if they are able to pay at all — and companies are rethinking their office footprints, said Dan Dooley, principal and CEO of MorrisAnderson, in an interview.
The explosion of online shopping has pressured the economics of brick and mortar retail space, and in response, landlords have repurposed more square feet to less-expensive experiential tenants like restaurants and gyms, which is pushing down the value of many lower-tiered malls, Dooley said. Meanwhile, the demand for office space is unlikely to recover for the next three or four years as the work-from-home trend plays out, Dooley said.
“Commercial real estate is going to be devastated,” Dooley said. “I don’t think there’s anything anyone can do about that.”