May 6, 2024 | Reading Time: 1 Minute
In the commercial and multifamily space, it’s crucial to note that banks are likely to follow a similar pattern to what was seen in the residential market during the 2009 crisis. Instead of immediately putting distressed assets on the market, banks may opt to work with borrowers, offering extensions and flexibility to avoid exacerbating market conditions.
While there may be examples made of those in particularly dire situations, overall, lenders are expected to prioritize communication and payment continuation over foreclosure. This approach is likely to result in less distress than anticipated, although some opportunities for rescue capital may still arise. As such, 2024 could present opportunities for acquisitions, especially in scenarios where rescue capital is needed to bridge financing gaps.