TORRANCE, CA—The increasingly competitive deal landscape demands that lenders pay close attention to more than financial terms, crucial though those may be. There's also an imperative to focus on risk management, as Joe Derhake, CEO of Partner Engineering & Science Inc., will attest. GlobeSt.com caught up with Derhake and what he's seeing in this area, which he describes as the fastest-growing segment of Partner Engineering's business, as 2015 gets underway.
GlobeSt.com: What factors are motivating lenders to put more emphasis on risk management?
Joe Derhake: Regulated institutions are seeing pressure from regulators, and CMBS lenders are seeing some pressure as well as discipline from the prime buyers and the B-piece buyers. In both instances, lenders are less likely to skip steps, and they have a more proscriptive approach to due diligence: “you have to get this report, or that report.” They're more likely to have specialists read the reports, as opposed to just general finance professionals, and they're more likely to address the issues.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
