Part 1/4:
Understanding Extend and Pretend in Commercial Real Estate
The concept of "extend and pretend" has become a significant strategy for banks and lenders in the commercial real estate sector over the past few years. As values have consistently dropped, lenders have found themselves in a tough situation: they want to avoid taking the assets back since they may not be equipped to manage real estate. Instead, many have opted to extend the terms of loans, hoping for market recovery.