💸 Cash Crunch and Rental Riches
From distress to success: The inevitable transformation of commercial real estate
Commercial Real Estate is caught in a perfect storm. Titans like Tides Equities, once invincible, now plead for cash as interest rates rise, and remote work trends bite.
Yet, certain cities like Detroit and Jackson still hold an allure, their single-family rentals promising gold in the chaos.
David Rubenstein of the Carlyle Group, however, is gazing at a different horizon. For him, distressed downtown office buildings offer a chance to stake a claim on the biggest bargain since the Great Recession.
Law firms are also adjusting to the shifts in the market. Big firms are targeting distressed assets, with dedicated groups to handle these opportunities.
As the sector continues to evolve, players within the industry must adapt to navigate this new reality.
In this edition of the AltReports:
📈 Sales Surge
💰 Rental Riches
📣 Rubenstein's Rally
🏢 Property Powerhouses
💼 Desperate Deals
Video of the Week: Spike in Foreclosures, and Delinquencies
Chart of the Week: Tanking CRE Values
Podcast of the Week: Foreclosure & What to Do Once You Have the House
Commercial Real Estate Dominoes Continue to Fall
Rising interest rates, remote work, and inflation are causing some big CRE players to stumble and fall.
Tides Equities, once the big kahuna of multifamily buyers, is now begging investors for cash.
Umpqua Bank is shutting down its multifamily division, and Orange County home prices are expected to nosedive by more than 10%.
Examining the Best U.S. Cities for Single-Family Rental Cash Flow
Apparently, despite all the headaches, Americans still love investing in these SFR rentals. The top cities based on ROI are Detroit, Jackson, and Cleveland, among others.
But, oh boy, if you're thinking about Sunnyvale, CA, you might as well start burning your money right now.
David Rubenstein Champions Downtown Office Debt
David Rubenstein, co-chair of Carlyle Group, is very excited about commercial real estate debt in downtown office buildings, calling it "the best single investment" he knows of.
Why?
Because office buildings are about to get a massive discount, bigger than anything since the Great Recession.
So, while everyone else is crying over their spilled milk, big investors like Rubenstein are ready to scoop up the bargains.