Here's why a potential crash in the commercial real estate market could look a lot like the 2008 crisis, according to one CEO
for the sector as it faces tighter credit conditions and a wall of debt maturities.Industry experts have been sounding alarms for the commercial real estate sector since the fall of Silicon Valley Bank last month, warning that high levels of commercial mortgage debt held by banks will need to be refinanced in much tough conditions in coming years. Approximately 80% of commercial property debt outstanding is held by small- and medium-sized banks.
Though regional banks have stabilized and fears of a wider banking crisis have ebbed, the collapse of SVB meansThose that continue making loans will be doing so at much higher interest rates than when many commercial mortgages were originally finance. The stress in the market could soon bubble to the surface, as $1.5 trillion in commercial real estate debt comes due in the next three year, Caroll said, at which point it will need to be refinanced or renegotiated somehow.
"Sellers are not realizing how much their properties have lost value, and they're not willing to dump their properties yet because they haven't felt enough pain. They're about to start feeling pain. These lenders are screwed," Caroll warned.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Sinkhole That Appeared in Small Texas Town in 2008 Expanding Again After Years of HibernationA massive sinkhole first appeared in a Texas town in 200 and some residents feared it might engulf the whole town — but after growing close to 600 feet across and 75 feet deep, it stopped Now, after a long hibernation, the sinkhole is growing once again
続きを読む »
Commercial real estate market could crash soon. Here’s whyCommercial real estate market facing price crash that rivals 2008 financial crisis
続きを読む »
Substack CEO 'incredibly disappointed' at Musk for throttling linksSubstack CEO says he was 'incredibly disappointed' at Elon Musk for throttling tweets with Substack links because it 'hurt writers'
続きを読む »
WME Acquires Nashville-Based Red 11 MusicJon Folk, the music agency’s founder and CEO, will join WME as partner.
続きを読む »
Fremantle UK CEO Simon Andreae Faced Misconduct Complaints Before Resigning On Health GroundsEXCLUSIVE: Simon Andreae, Chief Executive of 'Too Hot To Handle' and 'The Apprentice' producer Fremantle UK, faced at least two complaints of workplace misconduct before he quit today, citing health reasons
続きを読む »
Exclusive: Two U.S. Senators write to Tesla CEO Elon Musk after Reuters probeTwo U.S. senators have written to Elon Musk, Tesla Inc's chief executive, questioning him about the sharing by employees of sensitive images recorded by cameras in customers' vehicles.
続きを読む »