Michael Thom discusses the challenges for office stakeholders in Commercial Property Executive
Obermayer business and finance attorney Michael Thom was interviewed by Commercial Property Executive in connection with the changes in the office lending environment induced by remote work and vacant offices. The article, titled “How Office Stakeholders Are Coping With Maturing Loans, Looming Defaults” by Denile Doyle, published on May 3, 2023, focuses on the uncertain future for owners and lenders.
“Most tenants are on a five- to 10-year lease, and leases from 2019 are getting ready to come up,” observed Michael Thom. CEOs and city and state leaders are pushing employees to return to the office, particularly in downtown areas. “
Losing a big tenant can put a major dent in a building’s rent roll, undermining NOI and stressing the debt-service coverage ratio.
“If I know tenant A is leaving, I need to be talking with my lender so they aren’t blindsided. Or they’ll be sending letters that I’m in technical default,” said Michael.
Read the full article here.