Fertitta to CNBC: Commerical real estate bust is possible


The COVID-19 pandemic could lead to a real estate bust if we aren't careful. Houston Rockets owner Tilman Fertitta told CNBC he has some real concerns.

"If you don't do something we are going to cause a commercial real estate bust at some time, because we can't pay rent if we are not doing business,"Fertitta said.

Mike Wong of KW Commercial in Houston says he has concerns.

"It's going to be significant. We predict about 25-30% of small businesses won't come back. We are really seeing the independents taking the hit. The franchises have the leverage to negotiate with landlords," Wong explained.

Other commercial real estate analysts aren't as concerned. Cody Payne with Colliers International says it depends on location.

"It will be a slow, gradual move. But, they are returning, and landlords have been working with a lot of these tenants. Other states like New Jersey, California and Washington that have remain closed are going to see harder times," Payne said.

You can see the rest of Tilman Fertitta's CNBC interview below.


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