Some of New York’s real-estate developers are unloading their least viable office buildings at deep discounts

 Now that there aren’t any banks immediately and obviously on the brink of collapse any more, attention is shifting to commercial real estate, the doomed asset class du jour.

From the minutes of the Fed’s meeting in May:

The staff noted that the CRE sector remained vulnerable to large price declines. This possibility seemed particularly salient for office and downtown retail properties given the shift toward telework in many industries. 

The staff also noted analysis that found that while losses to CRE debt holders could be moderate in aggregate, some banks and the CMBS market could experience stress should prices of these properties decline significantly.

Robin Wigglesworth FT 30 May 2023

A $1.5 Trillion Wall of Debt is Looming for US Commercial Properties


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