Nearly five years ago one of our favorite former Wall Street and Washington insiders joined us to talk about the inevitable inflation storm brewing …
commercial real estate
Investors are shunning the real estate sector again, as headwinds from high rates show no sign of abating.
Property stocks are back among the year’s worst performers. They have plunged 22% since early February, with the threat of recession returning to the top of worries for market participants already calculating the fallout for funding costs from Silicon Valley Bank’s collapse and preparing for rates to remain elevated for longer.
More than two years after the virus pandemic upended the world of work, signs of distress in commercial real estate markets are emerging. The world is transitioning from an artificial landscape of ultra-accommodative monetary and fiscal stimuli that inflated returns to an environment where the federal government and the Federal Reserve tighten financial conditions.