Developers are dependent on tenants

Banks protect themselves by demanding from borrowers signed rent agreements for any commercial project.

According to “Rzeczpospolita” in case of every commercial projects banks protect themselves by demanding from borrowers signed rent agreements. The problem arises when, for example, investors focused at the housing sectors want to build an office building. Such a borrower has no experience and banks do pay attention for it.

Investors unanimously respond that the conditions imposed by the banks are too strict. It leads to a situation in which a developer is dependent on tenants from the very beginning.

Not long ago, banks did not require pre-lease agreements from developers, giving them half a year after completion of the building to find tenants. Many would want to return to the old regulation.


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