Is There a Commercial Real Estate Bubble?

[Scruddy]

The World’s Empty Office Buildings Have Become a Debt Time Bomb

From San Francisco to Hong Kong, higher interest rates and falling property values are bringing the commercial real estate market to a perilous precipice.

www.bloomberg.com

In the US alone $1.4Trn of CRE loans are due in the next year and a half. When the deadline arrives will the owners prefer default to large principal payments and borrowing at high interest rates to pay the bill? I think many will choose default.. covid changed the dynamic of the office setting and many businesses dont need the large space they once did. I think we're going to face a commercial version of the housing crisis in 24/early 25 potentially but obviously hope I am wrong. Thoughts?

 

[DogBoyRy]

The World’s Empty Office Buildings Have Become a Debt Time Bomb

From San Francisco to Hong Kong, higher interest rates and falling property values are bringing the commercial real estate market to a perilous precipice.

www.bloomberg.com

In the US alone $1.4Trn of CRE loans are due in the next year and a half. When the deadline arrives will the owners prefer default to large principal payments and borrowing at high interest rates to pay the bill? I think many will choose default.. covid changed the dynamic of the office setting and many businesses dont need the large space they once did. I think we're going to face a commercial version of the housing crisis in 24/early 25 potentially but obviously hope I am wrong. Thoughts?

It’s already started.

 

[Whiskeydeltadeltatango]

It’s already started.

This.


Pepper thy Angus boys.

 

[DogBoyRy]

This.


Pepper thy Angus boys.

John litt on cnbc last month was simple and great. Good you tube search for those interested in the topic.
Blue horseshoe loves john litt advice.

 

[DogBoyRy]

John litt on cnbc last month was simple and great. Good you tube search for those interested in the topic.
Blue horseshoe loves john litt advice.

Fyi
About a week ago he recommended a short that dropped 10% and still sinking.
Shorts are scary but i jump in up to my ankles on any specific call the dude makes.

 

[Obviously Oblivious]

So…… not a good time to go 100% allocation in REITs?