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The woes of Credit Suisse and Cyxtera may portend trouble for landlords

Leslie Yee
Published Mon, Apr 3, 2023 · 03:49 PM
    • Dark clouds may be looming for office buildings here and other property types as more questions pop up over the ability of tenants to meet rental obligations amid a weaker economy.
    • Dark clouds may be looming for office buildings here and other property types as more questions pop up over the ability of tenants to meet rental obligations amid a weaker economy. PHOTO: BT FILE

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    OWN a building and collect recurrent income from legally binding agreements. Sounds easy.

    However, things have been rocky for landlords in recent times. Lockdowns and movement restrictions to fight the Covid pandemic have brought into question the relevance of properties such as office buildings, and resulted in landlords extending help to tenants across various property types.

    In 2022, inflation started flaring and the US Federal Reserve began hiking interest rates aggressively. Many landlords are hurt by rising costs eroding operating margins. Many property owners are also facing higher borrowing costs and credit tightening.

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