(WEHT) — The coronavirus pandemic has prompted several businesses to close over the past several weeks. Commercial real estate – things like apartments, offices and hotels are among those impacted.
Eyewitness News spoke to Cody Payne with Capital Markets Group in Dallas, Texas about how commercial real estate has changed during COVID-19.
Brandon Bartlett: So Cody a lot of businesses are closed right now, how is the commercial real estate market looking right now?
Cody Payne: Well you know obviously there’s a lot of struggles out there for a lot of folks certain sectors are being affected more than others you know for example service oriented retail, the hospitality industry, certain industrial supply chain businesses are still doing well but for the most part there are a lot of changes that I think we will continue to see depending on how long they keep the states locked down.
Brandon Bartlett: What about apartments, offices the things like that hotels are they being affected?
Cody Payne: Absolutely, I think the majority of these guys are being affected. I was on the phone with somebody earlier this morning they run about 1000 multi family units across the US and they have a lot of renters that aren’t paying rent and there is certain relief out there for some of the tenants and even businesses that occupy Office, industrial and retail centers but there’s really not a lot of relief for the actual landlord and so they’re just having to bridge the gap and work with their lenders to kinda help maintain and get through these next few months.
Brandon Bartlett: There’s a lot of reports out there about some big-name companies out there that are not paying their rent right now. Are you seeing that?
Cody Payne: Yes I am, yes I am. We deal in investment, office, industrial so we deal anywhere from buildings having small mom and pop local offices and businesses to large national companies and retailers and so we’ve heard it all across the board. You know it’s very important for the smaller guys to look into the SBA loan program out there and yeah we’re absolutely hearing that from all product classes across the board.
Brandon Bartlett: Why is it that some companies aren’t paying their rent? What are they trying to get out of that?
Cody Payne: I think some of them whether they need it or not are trying to take advantage of the situation but there are many that do you need the assistance and so my father for example, he’s in the logistics business and they ship freight all across the country, they don’t need any government assistance they’re doing very very well right now so they didn’t seek any of it but there are quite a few I would say that could definitely utilize some of that. You know one of the recent projects that we sold was an office building and we had to direct several of those tenants to the disaster assistance website and to a couple SBA lenders to help them out over the next few months.
Brandon Bartlett: What about landlords? Are you seeing that they’re doing anything to help out their tenants right now?
Cody Payne: I am and you know for the most part if you’re a landlord and say you’ve got an office building or a retail center and you’ve got a tenant that comes to you and their business is struggling due to the current coronavirus situation, the first thing I tell those guys is let’s get these guys over to an SBA lender first and foremost to try to get relief from there. If they’re unable to get that then working out some kind of rental deferral you know partial rent even sometimes we’ve seen some landlords do a baited rent or work on extending the lease and utilizing some of the free rent to help out so I do see a lot of landlords getting creative all across the board and you know we’ll see how things work out over the next month or two if that needs to continue.