It was only a month ago that Elon Musk tweeted “Commercial real estate is melting down fast.”
Musk had alluded to the possibility that commercial real estate was edging over the cliff earlier than that.
“We really haven’t seen the commercial real estate shoe drop,” Musk said in an April interview with former Fox nighttime host Tucker Carlson. “That’s more like an anvil, not a shoe. So the stuff we’ve seen thus far actually hasn’t even — it’s only slightly real estate portfolio degradation. But that will become a very serious thing later this year, in my view.”
New data rolling in this week shows Musk was right on the market on commercial real estate trends.
“The commercial real estate crash is happening,” tweeted Reventure Consulting CEO Nick Gerli on July 10. “Values for office, retail, and apartment buildings are already down -11%. Morgan Stanley thinks values could crash -40% when all is said and done. (It’s a) big problem for the US Economy.”
A massive wall of commercial real estate debt is imminent, and the prospects for it all being paid off are highly questionable, according to Gerli.
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Source: www.news-daily.com
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