USRT - Commercial Real Estate Could Be At A Tipping Point
2024-02-12 22:10:11 ET
Summary
- There are similarities between the lead up to the Great Financial Crisis and the current circumstances in the commercial real estate sector.
- Fed Chair Jerome Powell's assurances that the problems in commercial real estate are manageable and isolated are reminiscent of statements made by Ben Bernanke in 2008.
- Approximately $1.2 trillion in commercial mortgages are set to mature over the next two years, and falling property prices could lead to significant loan losses for lenders.
- The Federal Reserve is downplaying the potential problems that could arise as a result of a debt crisis.
As the name suggests, REITer’s Digest is dedicated primarily to the real estate industry. As of late, a significant portion of my professional time is spent discussing, assessing, and forecasting the impacts of the developing changes in the real estate market ( VNQ ). Accordingly, this content and discussion has leaked into my coverage and content on Seeking Alpha....
Commercial Real Estate Could Be At A Tipping Point