Q&A: Cushman & Wakefield's Brad Newman-Bennett On The State Of Real Estate Insolvencies

March 9, 2026 - 23:41

The current landscape of real estate insolvencies is forcing a fundamental shift in how development projects are financed and structured, according to industry experts. A central theme emerging is the urgent need for developers to secure significantly more equity upfront than in previous cycles.

"I think the model needs to shift a little bit," stated one prominent figure in property advisory. "I think developers are going to have to require a lot more equity than maybe what they’re used to."

This push for greater equity investment is a direct response to tightened lending standards and increased market volatility. Lenders, burned by recent distress in sectors like office and retail, are now demanding much larger financial cushions from developers before committing capital. This represents a stark departure from the highly leveraged strategies that were commonplace during periods of low interest rates and abundant credit.

The new environment prioritizes stability and risk mitigation. Projects with substantial equity are seen as more viable and less likely to face insolvency during construction or leasing phases. This adjustment, while challenging, is viewed as a necessary correction that will lead to more sustainable development practices. The industry consensus is that a return to pre-pandemic leverage levels is unlikely, making robust equity partnerships essential for future success.