After Defaults, Property Owners Turn to Guarantees to Protect Portfolios

After more than R$630 million paid in rent guarantee insurance claims in 2025, property owners and managers are strengthening mechanisms to prevent defaults in commercial lease contracts

Cristina Caldeira, CEO of Unioncorp

By: SiiLA News

03/23/2026

Default risk has always been one of the biggest concerns for commercial property owners, especially in long-term, high-value lease agreements. In a volatile economic environment, companies in the sector have increasingly sought mechanisms to “shield” their rental portfolios and reduce the risk of disruptions in cash flow.

According to Cristina Caldeira, CEO of Unioncorp, protecting a portfolio means ensuring that property owners continue receiving rent even if tenants face financial difficulties.

“Shielding a portfolio means having an effective guarantee within lease agreements and preventing the property owner from suffering losses due to default,” Caldeira says.

The executive notes that historically this type of contract has recorded fewer payment delays than the residential market. Even so, the risk remains — and it can emerge even in situations considered unlikely.

Data from Susep (Superintendence of Private Insurance) show that between January and December 2025, insurers paid the equivalent of R$630,670,320 in rent guarantee insurance claims. This amount corresponds to 31% of the premiums collected by the insurance market in the rent guarantee product during the same period.

Jorge Camara, Head of Rent Guarantee Insurance Product at Junto Seguros, explains that rising default rates among companies have already affected approvals and costs for commercial rent guarantee insurance.

“The increase in defaults in major urban centers, combined with a more unstable economic environment, has led insurers to adopt stricter credit analysis criteria for corporate tenants. Today’s evaluations require stronger financial indicators, which directly impacts both policy approvals and pricing,” he says.

Camara adds that “companies with weaker balance sheets, higher debt levels or a recent history of instability tend to face greater selectivity during approval and, in some cases, higher premiums that reflect the increased risk of the operation.”

Unexpected risks

Recent cases show how even companies considered financially solid, such as Banco Master and Reag, can face difficulties that affect real estate contracts. For Caldeira, situations like these highlight the importance of protection mechanisms.

“Every property owner wants to have a bank as a tenant. But companies considered above suspicion do not always remain that way over time,” she says.

According to her, the urgency to close deals often leads property owners to relax guarantee requirements.

“Landlords sometimes overlook a more thorough evaluation of the guarantee due to the anxiety of closing the deal and starting to collect rent. When surprises come, it becomes much more difficult.”

She also emphasizes that risks are not always tied only to the financial health of companies. Operational factors can also trigger defaults.

“Sometimes a company stops paying for a variety of reasons. It could be a fire that disrupts production or any event that interrupts revenue. Without revenue, there is no way to pay rent.”

Long-term contracts in a volatile environment

In the corporate real estate market, lease agreements typically last between five and ten years — a horizon that, according to Rafael Jordão, Executive Commercial Manager at BrasilCap, has led to a shift in perception.

“This perception has changed significantly in recent years. Today there is much greater concern with the legal and financial security of lease agreements, especially in the corporate market,” he explains.

Jordão says that with vacancy rates declining, rental prices have been increasing, which can heighten concerns among owners involved in large contracts.

“In this context, we have observed an evolution in market behavior: real estate agencies, brokers and landlords have been seeking structured guarantees from the beginning of negotiations, rather than only after experiencing defaults. The trend points toward greater professionalization of the sector and the adoption of instruments that bring security, liquidity and predictability to long-term contracts,” he says.

A trend toward greater protection

Experiences with delays or defaults often accelerate the adoption of these solutions. According to Caldeira, some real estate management firms have begun structuring a large share of their portfolios with stronger guarantees.

“We have client real estate agencies where about 80% of the portfolio is already backed by rent guarantee insurance. It has become a strategy,” she says.

In her view, when property owners compare the performance of protected contracts with those without structured guarantees, the conclusion becomes clear.

“When a landlord compares the default rate of a tenant with insurance to one without it, they start to prefer the insurance. In many cases, they no longer want to lease without that protection.”

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