Tag: commercial real estate

A trend towards hybrid and remote work since the pandemic may cut $800 billion from office property values by the end of the decade, according to a recent study by consulting firm McKinsey. McKinsey said that employees continued to spend far less time working at the office compared to the pre-pandemic era, The survey, published on July 13, reviewed nine major metropolises, Beijing, ...

Commercial real estate in the United States is facing uncertainty, with mixed signals from traditional economic bellwethers like housing and employment contributing to the lack of clarity, and lingering fears of recession leave the predictions open-ended, according to a recent forecast by the University of California–Los Angeles Anderson School of Business, which included estimates for no recession and mild recession. ...

Office vacancy rates in San Francisco continue to climb, with new records being set monthly as businesses continue to flee and office workers resist a return to the city, according to experts. Vacancy rates reportedly surpassed 31 percent in May, the highest ever recorded in the city—historically known as an attractive location for businesses, ranking as one of the most ...

Commentary Charlie Munger, believed by some to be the real “brains” behind Berkshire-Hathaway, the multinational investment leviathon helmed by Warren Buffet, recently told The Financial Times, “We have a lot of troubled office buildings, a lot of troubled shopping centres, a lot of troubled other properties. There’s a lot of agony out there” in real estate. His comments are well-founded. ...

News Analysis A storm is brewing in the U.S. commercial real estate market, says Charles Munger, vice chair of Berkshire Hathaway. During an interview, the 99-year-old legendary investor told the Financial Times that U.S. banks have plenty of “bad loans” and will be vulnerable when the “bad times come” and commercial property prices crater. “It’s not nearly as bad as ...

Top investors at the annual Milken conference have warned of more economic pain to come after the collapse of First Republic Bank. Attendees at the conference said that the third seizure of a U.S. regional bank by the Federal Deposit Insurance Corporation (FDIC) since March is threatening to constrain credit and accelerate the path toward a severe economic slowdown. The ...