Understanding Workout Agreements for Commercial Real Estate
By Michelle OliveiraCommercial real estate is a dynamic and complex industry that often faces economic downturns, market fluctuations and unforeseen challenges. When property owners, developers, or investors encounter financial distress or difficulties in meeting their obligations, workout agreements become a crucial tool for resolving issues and keeping properties viable. A commercial real estate workout agreement is a negotiated arrangement between lenders and borrowers aimed at resolving financial distress while preserving the value of the property.