In this episode of Inside R&E, Christopher A. Gorman, a Member in the firm's Litigation Department, invites Dr. Rebel A. Cole, Lynn Eminent Scholar Professor of Finance in the College of Business at Florida Atlantic University, to discuss the Distressed Commercial Real Estate market. They explore key trends from recent years and offer insights into what lies ahead for the industry.

During their discussion, Dr. Cole explains the "Maturity Wall of Worry" facing regional banks, which has led to the widespread adoption of the "Extend and Pretend" strategy. He explores the impact of rising inflation and the significant exposure of regional banks to uninsured deposits, shedding light on the factors that drive banks to employ these approaches. Dr. Cole and Chris compare default rates between regional and national banks, noting that national banks rarely rely on such strategies. They also examine banks' substantial exposure to Commercial Real Estate Mortgages, the decline in property values, rising interest rates, and the shift from physical spaces to digital in the office and retail sectors. Looking ahead, they discuss what these factors could mean for Commercial Real Estate over the next 12 months and explore potential alternatives to the "Extend and Pretend" strategy for regional banks. Additionally, they touch on emerging opportunities within the Distressed Real Estate Market.

Christopher Gorman concentrates his practice in all phases of complex commercial litigation in State and Federal Courts. He has litigated cases on behalf of corporations and individuals involving a variety of substantive areas of the law, including breach of contract, commercial and residential mortgage foreclosure actions, construction litigation, landlord-tenant litigation, partnership and shareholder disputes, bankruptcy litigation, estate litigation, employment and restrictive covenant disputes, RICO, trademark litigation, and a wide array of real estate-related litigation. Gorman also serves as outside general counsel to several start-up entities and other corporations providing advice to clients on all general corporate, mergers and acquisitions, contract and employment-related matters.

Dr. Rebel Cole has published peer-reviewed articles in top academic journals that include the Journal of Finance, the Journal of Financial Economics, the Journal of Financial & Quantitative Analysis, the Journal of Financial Intermediation, the Journal of Corporate Finance, the Journal of Banking & Finance, the Journal of Real Estate Finance and Economics and Real Estate Economics. His primary areas of research are commercial real estate, entrepreneurial finance, and financial institutions. Most of his manuscripts are available for free download from the Social Science Research Network (SSRN), where he is ranked in the top 0.1% of more than 1,600,000 researchers worldwide. According to Google Scholar, Dr. Cole's research has been cited almost 14,000 times. According to Scopus and Web of Science, Dr. Cole's research has been cited more than 3,000 times. Dr. Cole is also an active commentator in the media. During his career, he has been cited in the Wall Street Journal, the New York Times, the American Banker, Bloomberg BusinessWeek, the Chicago Tribune, CNN Money, Forbes, the Huffington Post, NPR's All Things Considered, Voice of America News, the Washington Post, the Washington Times, and Yahoo Finance. He has appeared in television interviews on CNN, First Business News, Fox Business News, the PBS Nightly Business Report and The Today Show, as well as several local Chicago and south Florida news shows.

For any questions related to this episode, contact Christopher A. Gorman at [email protected] or (212) 551-1253. Dr. Rebel A. Cole can be reached at [email protected] or (561) 297-4969.

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