Commercial real estate deal flow is currently more precarious than at any time in recent memory. Healthier LTVs and reduced portfolio exposure to real estate on lender balance sheets will likely prevent the occurence of another financial crisis. However, with borrowing costs high, with lower post pandemic demand and with inceased eco-management costs, the focus should be on pre-distress refinancing or disposal.
Title insurance was a critical transactional conduit for the sale of distressed assets in the late 2000s. Asset Managers should be thinking now about how this niche insurance product can be repurposed for the impending headwinds.