How Commercial Real Estate Borrowers Should Approach Their Lender: What to Do Before Defaulting (Part 2)
All of the forbearances in the world will not help a property that has little chance of recovering in value. The market value of a property can and does change over time, and as many of our borrowers (and lenders) have discovered, that value can go down even faster than it goes up. Identifying and creating or preserving value is often a key to a successful workout, but many borrower and lenders fail to think dynamically and often miss critical factors. The second installment of my Urban Land article, "What to Do Before Defaulting," suggests that commercial real estate borrowers get a handle on the true current value of their property and how that value is likely to change as the market changes.