After decades of thriving growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. Office and retail property valuations have been falling since the pandemic brought about lower occupancy rates and changes in where people work and how they shop. The Fed’s efforts to fight inflation by raising interest rates have also hurt the credit-dependent industry. Recent banking stress will likely add to those woes.
There’s no broad agreement on asset valuations. Economic uncertainty will exacerbate that trend. And if you’re a bank, it’s a lot more difficult to lend against the value of a building if you don’t know what the value of the building really is. So how worried should we be? A lot of people hear commercial real estate and they think it’s all the same thing and the trends are they’re all the same but they’re not.
Good strateges
Turn all this unnecessary office space into affordable housing and/or hydroponic farming and leave us alone
The commercial real estate industry is large and has high investment value, but a bubble or collapse in the commercial real estate market would cause a financial crisis or even a global recession
Brick and Mortar can't compete with the internet. There is too much overhead including these massive rents and leases that businesses need to charge a premium to sell in person. Anyone can open an online store of penny's now and sell the same product for less online.
Let’s go Brandon
Thank Joe Biden, for destroying our country.
I've been paying attention to our president who tells us. The economy is in great shape while watching friends get laid off from their positions and small businesses close down. Believe the president or believe what you can see.
Nothing you post gets over 200 likes. I don't understand how you're still I'm business noone is watching you
“Lending to commercial real estate developers and managers largely comes from small and mid-sized banks, where the pressure on liquidity has been most severe. About 80% of all bank loans for commercial properties come from regional banks, according to Goldman Sachs economists.”
who has a no limited checkbook
Commercial real estate has been over saturated for decades. Everything from offices to retail space.
Again? Seems like all these industries, who can police themselves, really do a crap job at it.
Oh no what will the landlords do? Someone PLEASE think of the landlords!
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