Prepping real estate firms for an economic downturn
Economists, CEOs and business owners each have their own opinion on if or when the U.S. economy will fall into a recession. Some experts indicate that there is a good chance an economic downturn or recession will happen within the next two years, making it logical for real estate professionals to begin bolstering protections. Regardless of the timing of the recession in the future, adequately addressing a down market is essential to business survival. What steps can real estate firms take now that will help them get through a recession and come out the other end even stronger? Loan Considerations Evaluate your portfolio to determine which properties will be most vulnerable during a recession. If passing your loan covenants are an issue today, would the company still pass if there was a decrease in occupancy or if you were forced to freeze or decrease rents to retain tenants?