The Great Reset of Property Prices Is Underway. Brace for More.
The global financial crisis that began in 2007 reshaped the real estate market. Today, commercial real estate is facing a similar “Great Reset.”
Peachtree Group CEO Greg Friedman penned a recent article for Barron's - "Soft Landing Means a Hard Fall for Commercial Real Estate."
In the article he explores the challenges facing the commercial real estate industry in light of the Federal Reserve's recent interest rate cuts. With $1.5 trillion in CRE loans set to mature and refinancing becoming more expensive, Greg outlines strategic opportunities for investors, including capital-stack repositioning, private credit solutions, and distressed asset acquisitions.
As the market adjusts to higher borrowing costs, this is a must-read for anyone looking to stay ahead in commercial real estate. Click here to read the full article in Barron's.
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The global financial crisis that began in 2007 reshaped the real estate market. Today, commercial real estate is facing a similar “Great Reset.” Property valuations are resetting, capital availability is restricted, and investment activity is curtailed. Thanks to stress on properties’ balance sheets, the situation is set to get worse. More than $1.5 trillion of commercial real estate loans will mature over the next three years. Traditional lenders and the securitization market are unlikely to provide a clear path to replacing these loans. Without one, property valuations will reset further and reprice at levels that reflect current economic conditions. Basically, investors need to prepare for further losses. For more market insights from Peachtree Group CEO Greg Friedman, follow him on LinkedIn.
Peachtree's Greg Friedman: Office real estate distress
Peachtree Group CEO Greg Friedman discusses whether there is an imminent commercial real estate disaster on 'The Claman Countdown.'
Peachtree Group CEO Greg Friedman discusses whether there is an imminent commercial real estate disaster on 'The Claman Countdown.'