Mac1958
Diamond Member
I've been wondering when this was going to happen.
With the proliferation of work-at-home jobs and the ever-growing shop-from-home market, commercial real estate values are bound to suffer. Fewer people are working in office spaces, fewer people are shopping at malls, and it looks like the worst of the problem is getting closer by the day.
From shopping malls to office buildings, the CRE market is in serious trouble, and therefore so are the banks that support it. Regional banks, which took a huge hit when interest rates made their bond holdings turn to shit, may be feeling this more than the big guys.
Yikes. We'll see.
With the proliferation of work-at-home jobs and the ever-growing shop-from-home market, commercial real estate values are bound to suffer. Fewer people are working in office spaces, fewer people are shopping at malls, and it looks like the worst of the problem is getting closer by the day.
From shopping malls to office buildings, the CRE market is in serious trouble, and therefore so are the banks that support it. Regional banks, which took a huge hit when interest rates made their bond holdings turn to shit, may be feeling this more than the big guys.
Yikes. We'll see.
Wall Street braces for commercial real estate time bomb
Remarks last week by Federal Reserve Chair Jerome Powell about a spate of coming bank failures related to the faltering commercial real estate sector have sent shockwaves through the financial worl…
thehill.com