Cantor Fitzgerald CEO Says Prepare For “Very Ugly” Two Years Of CRE Turmoil
“Coming due in the next two and a half years at these higher rates – you’re not going to get proceeds, meaning when you have a $120 million loan on a building, and someone says I’ll give you 90 million at a much higher rate – than it throws the keys back to the lenders – and there’s going to be a lot of them that are going to get wiped out,” Lutnick told Bartiromo.
“I think $700 billion could default … The lenders are going to have to do things with them. They’re going to be selling. It’s going to be a generational change in real estate coming at the end of 2024 and all of 2025. We will be talking about real estate being just a massive change,”
https://www.zerohedge.com/markets/cantor-fitzgerald-ceo-says-prepare-very-ugly-two-years-cre-turmoil
Sir Kewl2,
The CRE “seed” is the one that will reap the next QE fruit.
Is there some way to find out if big banks like JPM and GS are reducing/offloading their CRE exposure to the Fed? (I may write an email to Pam and Russ Martens of https://wallstreetonparade.com/ as a public service for the Tent).
With that comment vomited out, I just felt like I wrote the headlines of the future.
GL
And not sure how much is the CRE impact in Great Britain … but high interest rates hurt EVERYONE, EVERYWHERE !!!
https://www.theguardian.com/business/2024/jan/22/more-than-47000-uk-businesses-on-brink-of-collapse-warn-insolvency-experts