News2021 saw a record decline in Chapter 11 filings, but that lull won’t last forever. As the Omicron surge disrupts travel and return-to-office plans, bankruptcy lawyers are preparing for a busier 2022.
Commercial real estate is in limbo
In November, Deloitte issued a hopeful projection for commercial real-estate prospects in 2022, citing its survey that showed members were expecting fewer vacancies in 2022. Since then, the Omicron rampage through the US has prompted a number of companies to delay or indefinitely postpone their employees’ return to the office.
“Within commercial real estate, hotels that cater to business travel are a soft spot, and core city office space is a soft spot,” Crowley said.
Some states and localities still have foreclosure moratoriums in effect, including New York, which has halted residential and commercial evictions until mid-January, though that is expected to be extended.
Real-estate owner-operators are likely candidates for distress, Patrick Collins, a partner at Farrell Fritz, said. “They still may have a lot of vacancies and nonpaying tenants because of the pandemic.”
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5 Bankruptcy Lawyers Predict the Weakest Industries in 2022 (businessinsider.com)
