BankNewswatch

CRE Lending: Property Types, Lease Structures and Other Non-Financial Risks

Monday, May 13th, 2024 1:30 pm - 3:30 pm CT

A BankWebinars.com Program

Click Here to register for program $299.00

Click Here to register for program and receive recording $449.00

As banks continue to deal directly with CRE loans plus indirectly through income-producing or rental real estate holdings that affect customers, it’s important to get beyond the numbers and assess the qualitative or non-financial factors that influence CRE performance over time.

Commercial and Industrial lenders know that non-financial factors such as the borrower’s industry, its competitive market, and its management team play a key role in the ongoing success of the business. Commercial real estate (CRE) loans have similar non-financial factors or issues, including the type of property, ability to successfully re-lease the property over the loan term, and proper management and maintenance of the physical facility. In this webinar, we’ll delve into best practices for smart CRE loans and managing CRE loan risk.

What You'll Learn

  • Differentiating property types
  • Issues with owner-occupied and specialty properties, such as hotels and nursing homes
  • “Triple net” versus full-service leases
  • Other common provisions in commercial leases
  • Reimbursement for common area maintenance
  • Co-tenancy clauses
  • Requirements placed on the tenant vs landlord
  • Estoppels
  • Subordination, non-disturbance and attornment provisions
  • Unusual or extraordinary lease provisions
  • Re-lease and rollover risk
  • Physical style risk and ongoing property management risk
  • Concept of sponsorship

Instructors

Richard Hamm has been training bankers for 28 years, designing and delivering courses specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training. He also conducts eight senior lender forums on a periodic basis in multiple states and one series at the national level.