Commercial Real Estate Might Be Upside Down for Some Time

Miriam Hall of Bisnow reported yesterday that Vornado Realty Trust said two-thirds of delinquent tenants were credit-worthy, ‘but businesses are hurting and the future is uncertain’.” Vornado collated 90% of office rents and 53% of retail rents in April and May looks to be similar. Office occupancy is currently 5%. Vice-Chairman David Greenbaum said “I think as the world begins to open; it’s going to be a gradual process. Tenants are anticipating returning initially 10-20% occupancy range. Fewer people are going to be using mass transit. When we open up, people will be walking to work, bicycling to work or driving to work.”