🌊 Banks Brace for Underwater CRE Wave
Underwater CRE Loans Threaten to Drown Regional Banks
Have you heard about the ghost town brewing by the Bay?
San Francisco's office spaces look lonelier than ever, with a whopping 36% vacancy.
Banks are on edge, and these office spaces are practically crying out for a rescue plan.
But that's not all.
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Atlanta's commercial real estate market is facing its own challenges, with declining prices and stalled deals.
And let's not forget the retail sector, where giants like PREIT are teetering on the edge of bankruptcy.
In this edition of the AltReports:
🏢 Corporate Ghost-Town
🤿 Dive Drama
🏙️ Skyline Shakeup
🛍️ Mall Meltdown
🏗️ Building Blues
Video of the Week: Grant Cardone: “We are Entering Greatest Real Estate Correction”
Chart of the Week: Investor Rebuys Office Complex from Blackstone at 67% Discount
Podcast of the Week: How is Rescue Capital Working in Real Estate Today?
San Francisco’s Office Vacancy Jumps to New Record at 36%
The City by the Bay just hit a whopping 36% office vacancy!
It looks like some tech firms are hitting 'unsubscribe' on their leases, adding to the tumbleweeds in the finance districts.
And sublease space? There are more than 20 entire Salesforce Towers up for grabs.
Economists: 44% Of U.S. Office Loans Underwater, Threatening More Bank Failures
Turns out, our dear office loans are doing an Olympic-level belly flop, with nearly half of them swimming in the not-so-glamorous negative equity pool.
Yep, you heard that right 44% of these loans are coughing up more debt than the actual value of the properties they're shackled to.
So what's the game plan? Bankers might have to break out the calculators and start reworking some of those not-so-hot loan-to-value ratios.
'Everything Has Changed': 2023 Brought A Reckoning For Atlanta Commercial Real Estate
CRE investors in Atlanta have had a rough 2023.
Those sky-high prices? Not so sky-high anymore.
Those never-ending deals? Looks like they found an end.