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mahatmakanejeeves

(60,221 posts)
Tue Nov 14, 2023, 07:48 AM Nov 2023

The Clearest Sign Yet That Commercial Real Estate Is in Trouble

REAL ESTATE

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.

{paywall}
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The Clearest Sign Yet That Commercial Real Estate Is in Trouble (Original Post) mahatmakanejeeves Nov 2023 OP
It's time to turn these properties into affordable housing Wicked Blue Nov 2023 #1
Well, with monopolies come a smaller need for commercial space. Farmer-Rick Nov 2023 #2
The risks lenders took was within their own guidelines so fuck 'em. jaxexpat Nov 2023 #3
We don't need more commercial real estate. We need more remote work and lifestyle choices. bucolic_frolic Nov 2023 #4

Farmer-Rick

(11,056 posts)
2. Well, with monopolies come a smaller need for commercial space.
Tue Nov 14, 2023, 10:30 AM
Nov 2023

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)
3. The risks lenders took was within their own guidelines so fuck 'em.
Tue Nov 14, 2023, 10:49 AM
Nov 2023

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)
4. We don't need more commercial real estate. We need more remote work and lifestyle choices.
Tue Nov 14, 2023, 03:34 PM
Nov 2023

The Information Super Highway grows up. As a society we've made these investments, let's use them, and stop feeding developers.

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