In this article, you'll learn:

• How Debt Service Coverage Ratio (DSCR) measures landlord financial stability and default risk.
• The impact of low DSCR on property maintenance and lease security.
• Risks associated with cross-collateralization of properties.
• Cities with the highest default risks due to low DSCR, such as Brooklyn and Chicago.
• Tips for tenants to protect their interests in financially unstable markets.

We’ve talked a lot about the risk that the office sector currently poses to the greater economy. And within the office market, there is more pressure than ever.
For tenants, the risk of widespread landlord defaults has never been more acute. So, to avoid getting stuck on a sinking ship, most corporate tenants taking on office leases, are refusing to negotiate with landlords until they see cold, hard proof that their property owner has the finances to back a long-term lease.