Problems in the Code: The Time Has Come to Suspend the SARE Provisions

The world has just experienced once-in-a-lifetime medical and economic conditions resulting from a worldwide COVID-19 pandemic — and we are not done yet. There is a time lag between a pandemic and its full impact on real estate markets. Although every American might soon be vaccinated and be able to go shopping and resume travel, the impact on real estate values will be felt for years to come. According to the Commercial Real Estate Development Association, commercial real estate development and operations contribute in excess of $1 trillion to U.S. gross domestic product.2 The Bankruptcy Code should be amended to enable the bankruptcy court to be a better venue for value preservation of real estate. Unfortunately, it currently is not. Suspension of restrictions on single-asset real estate (SARE) cases offer a clear solution to preserve real estate value while reinforcing the balance of socio-economic and equitable considerations.

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