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REAL ESTATE subprimeaftershock Surviving the BY KEV IN MARRON The issues, challenges, and potential outcomes are significantly different for commercial and residential real estate lawyers. A s Canadians watched with shock and awe the havoc that the sub- prime mortgage fiasco reaped on U.S. property and financial markets, it was easy to be smug about the relative stability and strength of our markets and institutions. It seemed that it couldn't happen here and it didn't happen here. But the contagion has now spread and the worldwide credit crunch that fol- lowed the U.S. mortgage debacle has debilitated financial markets around the world. It could have a devastating impact on the Canadian economy as a whole and the property market in particular. Real estate lawyers, many of whom have been struggling to survive even in a booming property market, are watching these developments anxiously. Many are www. already seeing signs of a slowdown and have started to think about how they will survive a real estate recession. Some still hope the fundamental strengths of the Canadian market will prevail. And oth- ers are optimistic that they will find work or find ways to work smarter no matter how the property market evolves. The issues, challenges, and potential outcomes are significantly different for commercial and residential real estate lawyers. Here are views from both sides: COMMERCIAL: COPING WITH THE CREDIT CRUNCH As a go-to lawyer for major real estate lenders, Jeffrey Lem doesn't need a crystal ball to see where commercial property markets are heading. mag.com NO VEMBER / DECEMBER 2008 19 ILLUSTRATION: PIERRE-PAUL PARISEAU