U.S. Bankruptcy Tracker: Real Estate Faces ‘Existential Crisis’

Cheap funding costs have extended a lifeline to many troubled companies, slowing the pace of U.S. bankruptcy filings, but shops, offices and hotels have been particularly vulnerable to the pandemic this month.

The real estate industry is “facing an existential crisis of what’s next,” said Sarah Borders, a partner focused on restructuring at law firm King & Spalding. She expects pressure to remain on retail as more shopping happens online and says office real estate will suffer as employees delay a return to work.

A unit of Eagle Hospitality Real Estate Investment Trust, which owns corporate, leisure ...