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It is the question on every property owner’s mind right now: Are my tenants able to keep paying the rent?
Tenant risk is the single most important factor in real estate, which the coronavirus crisis has bought into sharp focus by forcing tenants in multiple sectors to close virtually overnight.
For many years, real estate has been ignoring the importance of tenant risk, or has been measuring it the wrong way, according to some in the industry. And in the midst of the crisis, proptech firms are trying to change the way owners look at risk.
“The basic fact is that in commercial real estate investment, over the long term most of your total return comes out of rental income rather than capital growth,” Income Analytics Chief Operating Officer and co-founder Matthew Richardson said. “People are making the assumption that this will be the same kind of crisis as 2008, but…
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