https://www.foxbusiness.com/economy/commercial-real-estate-foreclosures-jumped-march-trouble-looms HYPERLINK has full article snip There were 625 commercial real estate foreclosures in March, up 6% from February and 117% from the same time last year, according to a new report published by real estate data provider ATTOM............ Complicating the matter is the fact that small and regional banks are the biggest source of credit for the $20 trillion commercial real estate market, holding about 80% of the sector's outstanding debt. end snip Set aside the desire to somehow justify the above because a Democrat administration is in DC. This is a ball that needs eyes to be focused upon be you a Democrat voter or anyone else. Will we see another rush to "do something" like in 2008 with the bank bailouts funded by taxpayers? Or, will we see the big banks who are in the pockets of many DC folk be given sweetheart deals to take over many regional banks? I have a couple of friends i banking who have been saying for a few years to watch the regional banks as they are heavily invested in commercial real estate as well as floorplan financing of boat and rv dealers which is also a market segment that is having trouble. Actions have consequences and the consequences we now see in the regional banks.
It's not that you consistently point out negative aspects of the economy, although one could pick any day of any year and find something negative, but that you seem to always contribute it to Democrats. I'm not a Democrat, but it appears inaccurate to blame only one party. For example, Republicans have had the majority in the House for 17 months now after running for election/reelection on a platform of fixing the economy, and they have done nothing significant to "fix" anything, much less the economy, so isn't it a little disingenuous to blame it on Democrats? And if we are really a free market system, are you advocating that the government step in heavily to manipulate the free market? Some would call that socialism, or even authoritarianism. I read your posts, but the point to them appears to be just "Democrats bad" without much context. Are you wanting the Federal government to step in and price fix, set minimum and maximum salaries, control every aspect of business so nothing negative ever happens?
I posted numerous articles to the OP of why commercial real estate is on the decline. As you noted the time, due to the after effects of covid and remote work, office space is in a free fall. I even provided articles that show an upcoming business, converting office to residential.i wanted to invest in that, but up front costs are very steep.
The problem is systemic and deep. I purchased my home 10 years ago for $215K. It is now worth around $400K according to Zillow. This is unsustainable. Homes are increasingly becoming out of reach for the youngest generation. This is the American dream being demolished. The constant pressure on house prices is very strongly correlated to the unrelenting horde of people that America lets in legally and illegally every year. It is also affected by corrupt politicians printing money which results in wealth destroying inflation.
did you even bother to read how i mentioned the 2008 rush to do something as well as big banks being in the pocket of DC move on with your Democrat voting nonsense.
To be honest, I have not seen anything you have written about the 2008 economic situation. I was not advocating voting Dem per se, but attempting to point out that partisan finger pointing does not good, partly because the issues or problems lie in both major parties, and only addressing some of them due to hyperpartisan theories won't solve anything. Thanks for your input, I'll just be movin' on down the road, just like you do with all these partisan complaints.
That is exactly what’s happening. Box stores are cutting back on capital improvements for the same reason.
Yes and with online tools for retail, e.g., glasses and clothes fitting, one doesn't even need to physically try on the product, so an even less need for a physical location.
the why doesn't matter as I clearly stated within the OP I also said it's not partisan. My questions were and still are, do you think DC should rush in and "do something" like they did in 2008 ? Or, will they let the big banks, who are in their pockets, sweep in and absorb the regionals for pennies via a sweetheart deal brokered by DC
The problem is mainly in below class A office space and poorer retail locations. Industrial, warehouse, data center, and other commercial real estate is healthy.
