Commercial real estate (CRE) investors seeking distressed and opportunistic deals find themselves in a challenging market environment. Similar to baseball teams in an offensive slump, they might occasionally achieve minor successes, but significant opportunities are scarce. As lenders and borrowers await a more favorable financing landscape, investors grow increasingly impatient.

As of late 2023, investors have amassed over $300 billion for investment in the United States. Despite this, the market remains difficult, with many waiting for prices to decline and a surge in distressed opportunities. Initially expected due to pandemic lockdowns and subsequently anticipated from the Federal Reserve's rapid federal funds rate hikes beginning in early 2022, widespread defaults, foreclosures, and distressed sales have not materialized as expected. Distressed sales accounted for only $3.1 billion in Q1 2024, representing a mere 3.9% of global CRE deal volume.