Posted 1/23/2024, 7:17:00 PM
Remote Work Exodus Sets Stage for $1 Trillion Commercial Real Estate Default Crisis
- Commercial real estate facing "massive defaults" and a "slow-moving train wreck" due to high debt levels and vacancy rates
- Shift to remote work has reduced office occupancy and demand, hurting fundamentals
- $700B - $1T in commercial real estate defaults likely by end of 2024/2025 per Cantor Fitzgerald's Lutnick
- Aggressive Fed rate cuts only way to slow defaults, but won't save majority of buildings
- Fed will try to cushion blow due to progressive makeup and desire to aid current administration