CRE Glossary
Part of REAiL’s plain-language glossary of commercial real estate terms for brokers.
Landlord default risk is the chance that a property owner fails to meet its financial obligations — most importantly its mortgage — during a tenant’s lease term. A landlord default can stall tenant improvement work, degrade building services, and put the lease itself in question through foreclosure, which is why brokers assess it before a client commits.