What Are Manhattan’s Older Office Towers Worth? First Benchmark Prices in the New Era by Wolf Richter • May 30, 2023 • 76 Comments Whoever buys the defaulted loan gets the tower. So far, investors and specialized lenders have been on the hook, not commercial banks.
Slowdown in Residential Construction Centers on Single-Family Houses. Multifamily Flattens at Highest Level Since 1986 by Wolf Richter • May 17, 2023 • 86 Comments Single-family construction still dominates, but its share of residential construction falls to the lowest in decades.
What Are Older Office Towers Worth? Here’s the First Sale in San Francisco’s New Era of Office CRE by Wolf Richter • May 9, 2023 • 116 Comments Union Bank made a deal to sell its tower at 75% off original listing price, setting the first new benchmark. Other towers waiting in the wings.
Another CRE Giant, Brookfield again, Defaults on Floating-Rate Office Mortgage. Again, CMBS Get this Mess, Not Banks by Wolf Richter • Apr 18, 2023 • 66 Comments Maybe banks, instead of keeping the riskiest CRE loans, securitized them? Would be a hoot to find out over the next few years as this plays out.
Trouble in Multifamily CRE: Two Big Messes, and Investors Are on the Hook, not Banks by Wolf Richter • Apr 11, 2023 • 118 Comments A REIT specializing in CRE loans foreclosed on 3,200 apartments in Houston. CMBS investors hit by default of 62 multifamily buildings in San Francisco.
Banks and Commercial Real Estate Debt, a Deep Dive: Investors and Government on the Hook for the Majority of CRE Debt by Wolf Richter • Apr 10, 2023 • 95 Comments Retail CRE debt has been crappy since 2017, and banks managed without collapsing. Now Office goes to heck. Multifamily, the biggie, is following.
What Are Older Office Towers Worth When They Finally Sell amid Record Vacancy Rates? Not Much. Huge Losses Everywhere by Wolf Richter • Apr 8, 2023 • 160 Comments But foreclosure sales are far worse, including a total wipeout of CMBS investors.
San Francisco Office Market Turns into Nightmare, in Two Easy Steps. Step 1: Hogging Office Space; Step 2: Working from Home by Wolf Richter • Apr 4, 2023 • 125 Comments Step 3: The economy… but that step hasn’t happened yet.
My Company Ended Up with Some Exposure to Silicon Valley Bank: I Warned about Monogamy’s Downside Years Ago by John McNellis • Mar 26, 2023 • 55 Comments In 2011, I published an essay on the need for multiple banking relationships that hits the SVB coffin nail on the head.
Shopping Mall CMBS Remain Distressed by Marc Joffe • Feb 22, 2023 • 51 Comments Many Commercial Mortgage-Backed Securities received inflated ratings from rating agencies due to the phenomenon of “ratings shopping.”
