Davis Polk partner and Real Estate co-head Michael Rishty was quoted in Commercial Observer on the current state of the commercial real estate market. Michael noted, “As interest rates have increased, I’ve seen clients rethink what their financing packages might look like for certain transactions, while some clients suffer higher financing costs or lower proceeds than they initially expected when they began their financing process. For clients that are sellers, I have seen some transactions die because the bids have come in much lower than they were hoping to get a few months ago when they began marketing their asset.”

Michael continued, “There’s more conversations on the strategic side now and transactions take some more thoughtfulness. When deals get a little harder to put together, often clients will have to be more creative with their structures, and that also requires more thought and involvement on the legal side. We get a little more involved and try to structure things a little more creatively, but clients looking for that edge always will come to us and look for that kind of strategic advice.”

Commercial Real Estate Attorneys Drag Deals Over the Hump in a Bear Market,” Commercial Observer (August 1, 2022)