Bad Debt, Concessions, Vacancy... The new syndication world.

[Duke Giordano]

Hello All,

Can someone help me understand a particular term, Bad debt.   In addition, what is means to see increased "Bad Debt" at this time, both in general and in quantitative terms.  If this value (Bad Debt) does change during COVID, what changes are most operators seeing in this category.

Secondarily, in relation to two other categories that may change in new deals in relation to COVID I would be curious as what these assumptions or numbers were pre and post in relation:

1. Bad Debt: as discussed above how would you define this and how do you anticipate this changing pre and post-COVID.

2. Concessions: I am guessing these will go up to keep current renters in place but the question is how much from a quantitative standpoint are people figuring into the new assumptions/underwriting depending whether deal is existing or looking at a new acquisition.  Dollar figure vs a percentage of expenses before and after.

3. Vacancy Rate: When looking at a new or existing deal, how are people changing their assumptions based on vacancy rate?