Economy
Related: About this forumThe Clearest Sign Yet That Commercial Real Estate Is in Trouble
The Clearest Sign Yet That Commercial Real Estate Is in Trouble
Lenders are issuing a record number of foreclosure notices related to risky property loans
By Konrad Putzier
Updated Nov. 13, 2023 9:54 am ET
{https://twitter.com/KonradPutzier [email protected]}
Foreclosures are surging in an opaque and risky corner of commercial real-estate finance, offering one of the starkest signs yet that turmoil in the property market is worsening.
Lenders this year have issued a record number of foreclosure notices for high-risk property loans, according to a Wall Street Journal analysis. Many of these loans are similar to second mortgages and commonly known as mezzanine loans.
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Wicked Blue
(6,493 posts)The sooner, the better
Farmer-Rick
(11,056 posts)That's what happens when monopolies take over. Who needs more than one office? Who needs more that one retail space? Hell my cable company doesn't even keep an office space in town anymore. Everything is by internet. Just trying and get a line repaired is like pulling teeth. Because you can't fix broken cable by phone.
With competition and local Mom and Pop shops, everyone of them needed retail and office space. But with only a one, or maybe at the most 5, corporations owning everything, they don't need as much commercial space.
Every action has a reaction. Thank Raygun for stopping the enforcement of antitrust laws.
jaxexpat
(7,556 posts)They've had no problem with financing the biggest overbuilding of business suites since the serpent's "Eden Inc." fruit stand opened for business.
Funny though, there's been a monstrous demand for affordable and energy efficient housing since forever and there's been no money for that. "Too risky" they say. At the risk of coming off as redundant, fuck 'em. Where did these geniuses find evidence to support any hope for sustained development of "mom & pop" entrepreneurs in our current age? Do they actually think anybody can make a living wage and hire a work force to marginally value-add and sell over-priced things to people too poor to keep a roof over their own heads? Hell, the thrift stores are overstocked with boomer estate junk and mid-life divorce remnants.
bucolic_frolic
(46,230 posts)The Information Super Highway grows up. As a society we've made these investments, let's use them, and stop feeding developers.