Q&A: Morgan Iannone Of Colliers On The State Of Real Estate Insolvencies

March 10, 2026 - 22:07

The commercial real estate sector continues to navigate a challenging landscape, with industry experts forecasting a rise in insolvency proceedings in the near term. According to Morgan Iannone, Executive Managing Director of Financial Services at Colliers, the current pipeline of distressed assets and ongoing discussions with lenders signal more turbulence ahead.

"The level of insolvencies we're seeing is significant," Iannone notes, pointing to the confluence of higher interest rates, looming debt maturities, and shifting property valuations. These factors are creating intense pressure on owners and developers who secured financing under vastly different economic conditions. The resulting financial strain is pushing more properties toward restructuring or receivership.

Iannone emphasizes that the situation is particularly acute for asset classes facing fundamental demand changes, such as certain office properties. The process is often complex, involving negotiations to extend loan terms, inject fresh equity, or transfer ownership. While each case is unique, the overarching trend suggests a period of continued adjustment for the market as it seeks a new equilibrium in a higher-cost capital environment. The focus for many stakeholders now is on proactive solutions to manage this wave of financial distress.