commercial real estate bubble cre bubble

Commercial Real Estate is in serious trouble

Declining credit quality metrics in Commercial real estate lending pushed several banks to reduce their exposures to the sector by offloading loans related to the asset class, particularly office loans, in the second quarter. US banks’ commercial real estate loan portfolios showed signs of increasing stress During the second quarter, the net charge-off rate for…

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US Real Estate

Further Escalation of Distress in the US Real Estate Sector

The amount of distress in the U.S. Commercial Real Estate increased to USD 71.8 billion during the middle of the year, marking the fourth consecutive quarter of growth. Distress refers to financially troubled assets and properties taken back by lenders. In the last quarter, distress exceeded property owner and lender workouts by approximately USD 8…

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Real Estate Pricing

The Complexity of Real Estate Pricing

Real estate, a diverse and intricate asset class, defies a single, definitive measure of pricing. The intricacies of the market and the multitude of factors influencing buyer behavior make it challenging to gauge property-market values accurately. Each market-level metric encompasses a wide array of buildings, each possessing unique qualitative attributes. Nevertheless, by examining various approaches,…

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Commercial Real Estate Bubble Burst

Challenges Loom as $900B in US Commercial Real Estate Loans Approach Maturity

Nearly $900 billion of commercial real estate loans in the United States are due to expire in 2023 and 2024. These mortgages are coming due in a more challenging capital-markets climate, and some may have trouble refinancing due to rising borrowing rates, dropping prices, and a more risk-averse attitude among conventional sources of funding

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