The risks of U.S. commercial banks being overexposed to commercial real estate (CRE) have intensified as the global pandemic upended long-held economic assumptions of perpetually subdued inflation, low interest rates, and in-office work. An analysis from The Conference Board suggests that in the next two years, more than $1 trillion in CRE loans will come due, and an increasing number of banks, mostly regional and community banks, risk having insufficient capital cushions. Executives should take steps now — including examining banking relationships, extending debt maturities, and securing adequate working capital — to mitigate the potential fallout.
Legitimately a painful but good thing. Commercial real estate is a fucking massive speculative bubble at this point. In the city I’m in people with what you would think are very successful businesses/shops are getting completely squeezed out by insane rent, like it’s actually baffling. I’m not sure what these dipshit s are thinking charging businesses so much (many of these areas aren’t even very nice), but I’m guessing these properties keep switching hands and every time they try to sell it for more, leading to the next asshole with the bag deciding they need to up rent to make back what they spent in a neverending spiral. Kinda like housing, but somewhat less evil and more stupid.
Local bike shop closed up today, all inventory going to the landlord. Sad.