Are Lenders Forgetting Pre-Recession Lessons?

MIAMI—As activity continues to pick up, do you worry that there might be a return to some of the irrational exuberance of the pre-recession market? At least two attorneys who have done their fair share of workouts don't.

Ron Cohn, managing partner of the Arnstein & Lehr Tampa office, focuses much of his work on working out problem commercial real estate and other commercial loans for lenders and secondary-market investors. His wife, Vanessa, handles closings of new loans for commercial lenders, as well as for buyers and sellers of commercial properties. 

GlobeSt.com caught up with the Cohns to talk about what they see in the lending market, as well as how the industry has changed for real estate attorneys in part two of this exclusive interview. You can still read part one: Lender Landscape Changing as Workouts Slow.

GlobeSt.com: As activity continues to pick up, do you worry that there might be a return to some of the irrational exuberance of the pre-recession market?

Vanessa: Thankfully, we are seeing buyers being more careful and deliberate as they work to finalize deals. Maybe they are remembering some of the mistakes of the past.

We work to make sure our clients are covering their liability and to ensure that all the details are covered in closing a deal. By and large, the clients take our advice to heart.

GlobeSt.com: Has the industry in Florida changed for real estate lawyers since the downturn?

Ron: There is tremendous competition in the industry. When Vanessa and I moved to Florida in 1985, there was something like 20,000 lawyers licensed in the state. Now that number is approaching 100,000.

To succeed, it's more important than ever to build long-term relationships with clients. The downturn made one fact even more obvious: It's critical that we help clients avoid trouble up front whenever possible, in addition to helping when a situation becomes difficult. The most successful lawyers are trusted advisors for their clients, both in good times and bad.