Financial disaster is looming for American commercial real estate.

This discussion has been going on in certain circles for the last year or so. Over 2000 Community and Regional Banks may be gone in 2024. Disaster also brings opportunity. Who will benefit from these bank failures? How does disaster in the commercial sector affect the residential sector?

 

“There’s a potential financial disaster looming over America’s debt-stricken commercial real estate sector, and a boiling point could come as soon as next year, real estate experts warn.” One of my Colleagues, Jack Horton writes:

 

“Like 2008 the risk is known and it’s mis-priced. The last time it was concentrated in the GSEs and bigger banks. This time it’s the community and regional banks. Estimates of bank closures from a CRE meltdown range up to 2,300. Markets always clear – will it be orderly or another calamity?”

https://www.businessinsider.com/commercial-real-estate-crash-debt-interest-rates-property-prices-outlook-2023-12?utm_medium=newsletter&utm_source=Sailthru&utm_campaign=Insider_Today

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