By: Erika Haberlen, Head of Marketing at Partner Engineering and Science, Inc.. Published on Sept. 4, 2025, on GlobeSt.
With forecasts pointing to continued distress in the commercial real estate (CRE) market through year-end, lenders, servicers, attorneys, and investors are bracing for a new wave of troubled loans. The playbook for managing these situations isn’t the same as it was during origination. Pre-foreclosure due diligence is faster, deeper, and more complex — and getting it right can mean the difference between preserving value and compounding loss.
As distress rises in CRE, lenders can’t afford to rely on outdated assumptions or origination-era reports. Distressed asset due diligence demands sharper analysis, faster action, and a willingness to confront uncomfortable truths about value, condition, and risk. Engage a due diligence consultant with experience assessing distressed assets, then work closely with them to refine scopes and gather the intelligence necessary for informed decision-making. Those who master the process will be positioned not only to minimize losses but also to uncover opportunities amid the turbulence. Learn more about due diligence for distressed assets in this free, on-demand webinar from Partner Engineering and Science, Inc.
In this latest GlobeSt article, Erika Haberlen gives an update on the commercial real estate (CRE) market through year-end.
