The commercial real estate debt market is facing a tough road ahead. With interest rates continuing to rise, refinancing costs are climbing, leaving landlords in a tight spot.
The "extend and pretend" strategy is starting to lose its effectiveness, and many are worried about what will happen when the bond market shifts next.
Switching to the office market in Atlanta, things aren’t looking much better.
Passive Cash-Flowing Properties
Buy shares of investment properties, earn rental income & appreciation for anywhere from $100 to $20k — let Arrived take care of the rest.
Vacancy rates are reaching record highs as companies downsize and sublease space.
Elsewhere in real estate, things aren’t much smoother.
The home insurance crisis continues to worsen, with homeowners in disaster-prone areas underinsured and facing huge gaps between property values and coverage.
On top of that, the housing market's cooling down, leaving sellers in trouble, especially in cities like San Francisco and Los Angeles, where prices are dropping fast.
In this edition of the AltReports:
⚠️ Debt Dilemma
📉 Vacancy Vortex
📊 Sector Stress
🏠 Insurance Instability
🔻 Urban Unraveling
Video of the Week: Orlando Housing Crisis? What’s Really Happening in Davenport
Chart of the Week: Repeat Corporate Bankruptcies in US Hit Fastest Pace Since 2020
Podcast of the Week: Why Capital Raising Is the Ultimate Superpower in Real Estate
Why CRE Debt Is Unlikely To Get Much Cheaper In 2025
Commercial real estate debt is currently navigating some very rocky waters, and the “extend and pretend” strategy is starting to show some cracks.
As interest rates rise, refinancing is becoming more expensive, and landlords are starting to buckle.
If you're relying on that strategy, prepare to panic when the bond market does its next wild turn.
Atlanta Office Players Say Market Has Bottomed As Availability Hits Record 33%
Atlanta’s office market is a mess with vacancy rates soaring and big companies ditching their office space like last season's fashion.
Subleases are everywhere, and landlords are practically begging for tenants with all kinds of "flexible" deals.
Some are optimistic this mess will clean up, relying on population growth and infrastructure upgrades—but it’s definitely not a sprint to recovery.
The $2 Trillion Home Insurance Nightmare is Getting Even Worse
The $2 trillion home insurance problem is, sadly, not going anywhere.
Homeowners in disaster-prone areas are underinsured to the point that the gap between property value and coverage is getting ridiculous.
With natural disasters getting worse, prices soaring, and the housing market correcting itself, it’s a storm just waiting to hit—both literally and financially.
The Big Cities with the Biggest Price Declines of Single-Family Houses
In major cities like San Francisco, Seattle, and Los Angeles, home prices are plummeting like they’ve had one too many drinks.
After years of a red-hot market, interest rates have knocked these cities into a cool-down phase that’s sending investors scrambling.
If you're a buyer, it's your moment to pounce, but sellers are getting absolutely roasted as they watch their once-prized properties lose value..
Real Estate Second-Most-Distressed Sector
Real estate in the UK is a dumpster fire, trailing only behind who-knows-what in the "distressed sectors" rankings.
Commercial spaces are floundering, thanks to remote work, skyrocketing interest rates, and people just not showing up to the office anymore.
Investors are licking their chops, eyeing distressed properties, but let’s be real: recovery’s a long shot unless the economy starts behaving itself.