This has been an interesting analysis for the past few weeks. While we've been fixated on the residential housing market, major sectors of non-housing commercial real estate have been in a state of collapse, panic, decay, crisis, etc....since the Pandemic. Or perhaps, the collapse, panic, destruction, etc....in CRE has been building for decades due to profligacy, greed, low interest rates, etc....AND SOMEBODY SHOULD DO SOMETHING ABOUT, BUT IT'S TOO LATE AND WE'RE ALREADY IN A RECESSION!!!!
No, wait, the churn in the CRE market is called "business" or "market forces at work" or "creative destruction" and the impacts on the broader economy have been muted by the fact that you can have upheaval in a sector without blowing up everything else. Perhaps in a different Universe there would have been a Fed that interpreted price declines in Manhattan office buildings as a sign that money should be tighter and restrictions placed on sales, transactions, and valuations for the next few decades.
This has been an interesting analysis for the past few weeks. While we've been fixated on the residential housing market, major sectors of non-housing commercial real estate have been in a state of collapse, panic, decay, crisis, etc....since the Pandemic. Or perhaps, the collapse, panic, destruction, etc....in CRE has been building for decades due to profligacy, greed, low interest rates, etc....AND SOMEBODY SHOULD DO SOMETHING ABOUT, BUT IT'S TOO LATE AND WE'RE ALREADY IN A RECESSION!!!!
No, wait, the churn in the CRE market is called "business" or "market forces at work" or "creative destruction" and the impacts on the broader economy have been muted by the fact that you can have upheaval in a sector without blowing up everything else. Perhaps in a different Universe there would have been a Fed that interpreted price declines in Manhattan office buildings as a sign that money should be tighter and restrictions placed on sales, transactions, and valuations for the next few decades.