It Started: Commercial Real Estate Collapse (Worse Than 1929)

It Started: Commercial Real Estate Collapse (Worse Than 1929)

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Sources:
1. https://www.bloomberg.com/news/articles/2023-03-02/blackstone-defaults-on-531-million-nordic-property-backed-cmbs\
2. https://www.bloomberg.com/news/articles/2023-03-01/work-from-home-high-interest-rates-put-92-billion-in-office-mortgages-at-risk#xj4y7vzkg
3. https://therealdeal.com/la/2023/03/02/laguna-point-falls-behind-on-329m-loan-for-dtla-apartments/
4. https://fortune.com/2023/03/01/bank-of-america-analyst-warns-fed-will-hike-rates-to-the-point-of-pain/

The commercial real estate market is in very big trouble as there will be roughly $140,000,000,000 ($140 BILLION) in loans that must be refinanced in the coming 24 months, half of which is on adjustable rate (floating rate) debt. The big question is how to most of these lenders hold on when their properties have lost tremendous rental income from the work from home trend that has grown over the last couple years and mortgage interest rates have doubled.

I am predicting we will begin to see more and more lenders default on commercial properties over the next coming months and few years to a capacity that we have never before seen. I believe this will be a once in a lifetime collapse of commercial property.

#realestate #economy #realestate


Did you miss our previous article...
https://trendinginrealestate.com/home-remodeling-trends/the-risks-of-investing-in-commercial-real-estate