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Challenges and Impacts in Distressed Commercial Real Estate Loans
The chapter delves into distressing case studies involving multi-million dollar loans on commercial properties facing significant losses and challenges, from office spaces in Chicago to properties in Lower Manhattan. It analyzes the effects of tenant non-renewal, payment defaults, and market uncertainties on property values and cash flows, highlighting the complexities appraisers encounter in this sector. The discussion also explores the implications of rent resetting, value deterioration, and legislative restrictions on rent-stabilized assets, emphasizing the need for strategic planning in a dynamic real estate market.