Page 29 - BusinessWest April 27, 2020
P. 29

 Hitting ‘PauseE’
Real-estate Market Slows
as Landlords, Tenants Face
New Realities
Commercial Real Estate
By George O’Brien
van Plotkin calls it the “trickle-up effect.”
He was referring specifically to the pressures placed on the
owners of multi-family dwellings and apartment complexes — and also to those landlords’ vendors — when, as a result of job losses forced by COVID-19, tenants cannot pay their rent, yet
they’re protected from eviction by state and/or federal legislation. “Multi-family property-management companies and landlords may be
impacted disproportionately to the extent that there are forgiveness rules being discussed that would loosen rent-payment obligations and allow residential tenants to defer rent payments,” he said. “Clearly, unless there are provisions for the property owners to be made whole on the deferral or forgiveness of rent, it could create a variety of economic hardships to those property owners.”
But the trickle-up effect applies to virtually all types of commercial real estate and fallout from COVID-19, said Plotkin, president of Springfield- based NAI Plotkin, who tragically lost his mother to the virus earlier this month. He and other property managers who spoke with BusinessWest
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