Category: Commercial Real Estate
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Evergrande Disaster
China’s property collapse, particularly with Evergrande, can be attributed to the country’s one-child policy, declining birth rate, and faulty population data. Evergrande’s growth strategy of borrowing money for land acquisition and selling homes before they were built resulted in massive debt for the company. Evergrande has over $320 billion in debt, making it the most…
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“Survive ’til 25?” Barry Sternlicht
Starwood founder and real estate investor Barry Sternlicht discusses various topics, including his thoughts on the current state of the real estate market and the potential impact of artificial intelligence. He criticizes the Federal Reserve for raising interest rates too quickly, resulting in vacant office buildings. Sternlicht predicts a recession but hopes it will be…
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Blackstone forecasts….
Blackstone CFO Michael Chae sees inflation trending down and economic resilience. However, he also highlights the challenges of the cost of capital and the availability of capital, which are affected by factors like short rates, quantitative tightening ($1T annually), and credit contraction. As a result, Blackstone expects the Fed to deliver a slowdown to the…
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Commercial Real Estate
1.4 trillion of commercial debt is coming due in the US alone, and with the cost of borrowing being up and the value of buildings down, refinancing may not be possible for some. Many banks, lenders, and owners have to decide what to do as it is unclear how much further down it will go.…