Bring on the Supply: Single-Family Construction Starts in 2024 Rose to 2nd Highest in 17 Years amid Budding Glut. Multifamily Starts Plunge from Boom amid Oversupply & CRE Depression by Wolf Richter • Jan 17, 2025 • 80 Comments But small multifamily buildings with 2-4 units dodge the CRE depression.
Office CMBS Delinquency Rate Spikes to a Record 11%, Blowing by the Financial Crisis Peak by Wolf Richter • Dec 31, 2024 • 146 Comments The office-debt meltdown keeps getting worse. The motto in 2024 was “Survive till 2025” via extend-and-pretend. But now what?
Credit-Market Mania Crushed “Yield Spreads” & Risk Premiums, but Corporate & CRE Borrowing Costs Are Still Much Higher by Wolf Richter • Dec 9, 2024 • 45 Comments Loosey-goosey financial conditions don’t mean low borrowing costs. They just mean narrow yield spreads.
Factory Construction Spending Soars to New Record, +16% YoY, +242% since 2019: Result of Corporate & Strategic Rethink by Wolf Richter • Dec 2, 2024 • 101 Comments Trump’s tariffs — a tax on profit margins of US & foreign companies — will push in the same direction as Biden’s taxpayer-and-debt-funded incentives.
Office CMBS Delinquency Rate Spikes to 10.4%, Just Below Worst of Financial Crisis Meltdown. Fastest 2-Year Spike Ever by Wolf Richter • Nov 30, 2024 • 83 Comments Office-to-residential conversions are growing, but are minuscule because not many towers are suitable for conversion.
Office CMBS Delinquency Rate Spikes to 9.4%, Highest Since Worst Months after the Financial Crisis by Wolf Richter • Nov 4, 2024 • 98 Comments “Survive till 2025” is the motto in CRE now, but that might not work either.
Epic Office Glut Hits Records in San Francisco, Atlanta, Chicago, Los Angeles, Seattle, Washington DC. Dallas Availability Rate Dips to 30%, Houston rises to 29% by Wolf Richter • Oct 1, 2024 • 44 Comments The “war for space” before the pandemic unravels into biggest office glut ever.
CRE Mess Not Letting Up: CMBS Delinquency Rates Jump in September as Office, Retail, and Lodging Deteriorate Further by Wolf Richter • Sep 30, 2024 • 57 Comments Rate cuts cannot fix the structural issues crushing office & retail CRE. But industrial, fueled by ecommerce, is in good condition.
Construction Spending Squeaks to Record amid Eyepopping Boom in Spending on Factories while Residential Construction Tries to Dig Out of Last Year’s Slump by Wolf Richter • Sep 3, 2024 • 43 Comments Majority of construction spending goes into nonresidential, dominated now by a spending spree on factories.
Plunge of Single-Family Construction Starts in July Was Huge Outlier. See Hurricane Beryl. Multifamily Jumped 45% from March Low despite CRE Depression by Wolf Richter • Aug 16, 2024 • 43 Comments What we’re worried about and what we’re not worried about.
