How Cushman & Wakefield Is Guiding Lenders And Special Servicers Through Today's Market Challenges

In today’s turbulent commercial real estate landscape, uncertainty is the only constant. High vacancies, tenant instability, maturing debt and elevated cap rates have created a perfect storm for lenders and special servicers. 

As distressed debt becomes more prevalent, the need for experienced, strategic guidance has never been more critical.

Cushman & Wakefield’s distressed loan solutions platform is stepping in to meet this moment by offering lenders a comprehensive, data-driven, highly adaptable approach to navigating distressed loans.

A New Kind Of Distress

While comparisons to the Global Financial Crisis are inevitable, today’s distress is fundamentally different.

“The last cycle was driven by loose lending standards,” said Mike Nevins, head of Cushman & Wakefield’s distressed asset solutions group. “This time, it’s the real estate fundamentals, especially in the office sector, combined with a challenging interest rate environment.”

Despite the differences, the path to recovery still hinges on experience and execution. Cushman & Wakefield has been through the cycle before, having managed hundreds of receiverships in federal and state courts, across multiple jurisdictions and all asset classes. That depth of experience allows the firm to devise long-term solutions and strategies that lead to maximized recovery.

Strategy Meets Flexibility

“There’s no one-size-fits-all solution,” Nevins said. “Every lending group has a bespoke strategy for dealing with distressed loans. Some are willing to take assets back, while others prefer to execute loan or receiver sales. Our goal is to align with their strategy and help ensure successful execution.”

That flexibility is a cornerstone of Cushman & Wakefield’s platform. The firm’s professionals understand the nuances of each approach and provide support across the full spectrum of services, from strategic advisory to receivership services.

Intelligence That Drives Action

In a rapidly shifting market, data is power.

“One theme that’s consistent with all the lenders we’re speaking to is a hunger for market intelligence,” Nevins said. “They want to understand what’s happening in the market, what comparable assets are trading for and how to benchmark their expectations.”

Cushman & Wakefield delivers real-time, actionable intelligence through its boots-on-the-ground presence in every submarket. This enables faster, more informed decision-making, improved risk assessment and a competitive edge in a crowded field.

A One-Stop Shop For Distressed Solutions

Another key differentiator Cushman & Wakefield provides is the convenience of a single-source solution. The firm offers integrated services across loan sales, property management, leasing, capital markets and more. This holistic approach streamlines communication, enhances coordination and reduces costs.

“Recently, we helped a client with a mixed-use receivership that required expertise in both office and multifamily property management and leasing,” Nevins said. “We brought together professionals from across our platform to deliver a seamless, single-source solution.”

Avoiding Value Erosion: The Case For Loan Sales

As we near the end of the loan modification and extension cycle that began two or three years ago, lenders are increasingly seeking catalysts to resolve stalled negotiations, said Cushman & Wakefield Managing Director Sean Hayes, who leads the firm's national loan and portfolio sales group. Outcomes may include a final modification with new pricing, discounted payoff, recapitalization or foreclosure. Not every deal supports a short sale, and inaction risks further value erosion. 

The loan sale market can provide timely price discovery and create resolution options, Hayes said, particularly for large, complex loans involving diverse, international bank groups where consensus is hard to reach. In such cases, loan sales may offer a more efficient path to recovery.

Maximizing Recovery, Minimizing Risk

Ultimately, Cushman & Wakefield’s goal is to help lenders and special servicers achieve operational stability, minimize financial loss and protect stakeholder interests. Whether executing leasing strategies, managing assets or overseeing dispositions, the firm’s integrated approach ensures that every move is aligned with the client’s recovery goals.

“In this environment, lenders need more than just advice — they need execution,” Nevins said. “That’s what we deliver.”

This article was produced in collaboration between Cushman & Wakefield and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.