💥 Bankruptcy Boom and CRE Recession
Flipping the script: Turning bankruptcy rise and CRE recession into prime investment opportunities
Pricier debt is eating away at cap rates faster than you can say Bed Bath and Beyond.
Meanwhile, industrial spaces and data centers have become hot commodities, witnessing unprecedented occupancy rates and sky-high rents.
Yet, the sector's glistening facade masks an impending storm.
Forecasts paint a picture of a recessionary dip in commercial real estate values by the end of 2023
In this volatile market, every rise has a fall and every crash, a potential bounce back.
In this edition of the AltReports:
🖨️ Money Printer Problems
💥 Imploding CRE Values
🤔 When to Raise Rents
🔮 Debt Crisis Predictions
🏢 WFH Takeover
Video of the Week: Where Will the Housing Crash Begin?
Chart of the Week: Canada’s Bulging Debt
Podcast of the Week: Multifamily Opportunities Created by Bridge Debt
The End of Easy Money: Bankruptcy Filings Pile Up at Fastest Rate since 2010
It’s a regular bankruptcy bonanza out here as companies say sayonara to the good ol' days of Easy Money.
We're seeing a record number of bankruptcies with big names like Bed Bath & Beyond going belly-up.
Why? Debt's gotten pricier and investors aren't so keen on buying it. So now, these debt-addicted companies are getting a harsh reality check.
CBRE: Recession to Tank CRE Values in 2023 Before Revival
Industrial and data centers are in high demand, thanks to the pandemic, pushing rent and occupancy to crazy high levels.
But here's the twist: despite the rosy picture, the market might still face some turbulence, thanks to rising interest rates putting pressure on cap rates.
This report suggests that the market's future will be shaped by external factors like inflation, monetary policy, and changes in where people live and work.
Evaluating Rental Rates and Knowing When to Raise the Rent
Regular check-ups on your rates (at least once a year) is the name of the game.
If things are heating up in your market or your costs are on the up and up, it might be time to up your rates.
But don't be a jerk about it - let your tenants know well in advance. They'll appreciate the heads up and may be more accepting of the hike.