David Heymann, Managing Partner of Meltzer, Lippe, Goldstein & Breitstone, LLP provided insight on what Long Island business owners can expect to see in 2023 in the Long Island Business News special issue “What We’ll See in ’23.”
He noted: 2023 brings with it a lot of economic uncertainty given the current high rate of inflation and rising interest rates, which have led to increases in costs of food and other everyday goods, thereby putting a strain on disposable income and the ability to save for most Americans. The higher interest rate environment, coupled with the increased cost of goods and services, will likely have an adverse effect on real estate development and financing as well as a borrower’s ability to meet debt service coverage ratios on floating rate loans. As a result, I would expect to see increased loan defaults and broken development deals leading to opportunities for those companies with substantial dry powder, distressed debt purchasers, and workout firms. Further, it is likely that we will see increased litigation and bankruptcy filings in 2023.
Read more: Long Island Business News