Rising interest rates and maturing loans have created distress in segments of the commercial real estate market. Understanding where and why distress is emerging helps identify opportunity.
Distress Indicators
- Loan maturities with refinancing gaps
- Properties with significant capital needs
- Assets with major tenant rollover risk
- Overleveraged sponsors facing capital calls
Buyer Positioning
Successful distressed buyers combine patient capital with operational expertise and relationships that surface opportunities before broad marketing.