Hotels and retailers not paying rent due to the coronavirus pandemic spikes in April, Trepp says

The coronavirus outbreak is already causing a spike in commercial mortgage delinquencies in the hotel and retail sectors, a new analysis finds.

The data speaks to a bigger fear haunting the commercial real estate industry: That Covid-19 could spark an even bigger mortgage crisis than the one in 2008, which devastated American homeowners...

Key Points

•  Nearly 20% of all lodging CMBS loans are categorized as either “in grace period” or “beyond grace period,”  according to data from Trepp, a New York-based research firm that tracks the CMBS market.
  
  
• Retail CMBS loans not paid in April have jumped to about 9% from 1.7% in March, Trepp said.
  
  
• The data speaks to a bigger fear haunting the commercial real estate industry: That Covid-19 could spark an even bigger mortgage crisis than the one in 2008, which devastated American homeowners.