- CBRE Group is trading at a record price and valuation despite considerable weakness in the CRE market.
- The CMBS delinquency rate remains at high levels while commercial rental growth is turning negative due to oversupply.
- Large corporations continue to shift toward the work-from-home which will likely exacerbate excess inventories in the office and multifamily property markets.
- CBRE has depended on reducing operating margins in order to pursue growth which implies competitive pressures are growing and its market-share may have peaked.
- While CBRE is an industry leader, the industry is in a weak long-term economic position and its stock appears overvalued, creating a strong short setup.
For further details see:
CBRE Group: The Commercial Real Estate Market Is Entering A Depression