Tomasz Piskorski, a professor of real estate and finance at Columbia Business School, said that while a wave of defaults, foreclosures and evictions could cause problems in the financial system, the blanket approach to the residential market in Omar’s proposal wasn’t the solution.

“I think it’s just too far reaching, too costly, and it might not work quickly enough to provide financial stability,” he said.

Christopher Mayer, who [teaches] real estate at Columbia Business School, said that commercial leases are usually ironclad. “There are very few circumstances that a lease allows the tenant not to pay rent.” But he pointed out that WeWork has structured most of its leases in a way that makes them easier to get out of. “WeWork can go to a landlord and say, ‘I’m just going to walk away from this lease,’ and there’s relatively little the landlord can get beyond getting their space back.”

If Professor Stijn Van Nieuwerburgh were to grade the $2 trillion CARES Act, including its Paycheck Protection Program (PPP) and the Federal Reserve’s Main Street Lending Program, he would give them passing marks.

“The program is a major step forward in addressing the risk of wide-spread failure of businesses due to the pandemic,” Van Nieuwerburgh says. “My research shows that the programs that were put in place may prevent about 40 percent of businesses from defaulting.”

In case you missed it, Goodwin and Columbia Business School held a Real Estate Capital Markets Conference Virtual Update on May 27. A recording of the webinar is available to access by clicking this link and entering your information. 

The Columbia Business School Real Estate Circle is an exclusive alumni-only group that provides unique networking and educational events for its members. Events and programs are designed to encourage networking and professional development. The Circle has been convening on a monthly basis for a COVID-19 response market update among its members. The expertise of our member base runs deep and extends globally, and it’s been an important opportunity to share insights, compare observations, and ask questions. If you’d like to attend a future web call as our guest, please send us a note. We’d be happy to have you attend, and share your expertise.