Publication
25 Feb 2026 ·
United Kingdom
Unlocking Options: A toolkit for real estate stakeholders facing corporate tenant distress
CMS toolkit series
1 min read
Property tenants experiencing financial distress is a major risk for real estate stakeholders. The combination of rising arrears, high vacancy rates in secondary markets and complex legal frameworks means property owners face mounting challenges in managing financially distressed tenants. While prime assets show resilience, secondary office and retail spaces are under significant pressure and arrears trends suggest tenant distress continues to impact the real estate market.
This activity can range from a tenant restructuring its business by a formal insolvency process, sale of the business to a third party, through to realisation of the company’s assets for distribution to creditors under a formal winding up.
In this toolkit, we provide stakeholders with:
- The risks, and their impact, when tenants are in distress
- A quick guide to types of corporate insolvency
- The new Practice Statement for restructuring plans
- Remedies in light of different types of corporate restructuring and insolvency
- The challenges to restructuring plans and what these mean for landlord creditors
- Landlord remedies at a glance
