Virus pummels commercial real estate, could end long boom
In this May 12, 2020 photo, a storefront displays "For Rent" signs in the window in the Red Hook neighborhood of the Brooklyn borough of New York. . Some small businesses are closing for good due to the economic crisis brought on by the coronavirus pandemic. (AP Photo/Mark Lennihan)
By JOYCE M. ROSENBERG and KEN SWEET AP Business Writers
NEW YORK (AP) — Americans are likely to see more “for rent” signs in the coming months.
That’s because many businesses devastated by the coronavirus pandemic are expected to abandon offices and storefronts.
The changes are happening because more employees are working from home, and more people are shopping online.
The result could bring an end to the long boom in the nation’s commercial real estate market.
Hotels, restaurants and stores that closed in March have seen only a partial return of customers.
Many of them may fail.
Commercial landlords have reported an increase in missed rent payments.
They expect vacancies to rise through the end of the year.
