Commercial Real Estate Collapse Bigger Than Subprime Mortgage Crisis
The Atlantis Report
Commercial Real Estate Collapse Bigger than Subprime Mortgage Crisis
Premiered 72 minutes ago
Commercial Real Estate Collapse Bigger than Subprime Mortgage Crisis
Commercial Real Estate is the next shoe to drop. More and more large warehouse buildings being built that remain vacant. The hotel market is in freefall. Unemployment is going to hit 10% before summer is up.
Have you seen the trajectory of the stock market? This is not going to be your typical end-of-cycle downturn. Hotels are getting smoked right now. Retail is going to be right behind them. The next few months are going to be unprecedented.
There is nothing that will reverse the trend away from malls. Five years from now, I bet more than half will be gone. Office and retail are getting crushed. Many people are behind eight months on their mortgage or rent. The moratoriums will end, but I don’t know how 1/3 of all Americans will be evicted. The number is so large they could just all say “no,” and no one could do a thing about it.
Where will they go? No one wants to rent to someone who has been evicted. Previous landlords will be rightfully nervous about taking any tenant into their newly empty space. Let's not forget that a foreclosure rate of less than 3% helped trigger the 2008 collapse. So it doesn't take a whole lot, and there are still a whole lot of people struggling to catch up on rent/mortgage where that has never been a problem before.
Many landlords will step out of this market because the hassle of not getting paid, government involvement & eviction just is not worth it.
House value is high, and this is the best time as ever to sell it. So we see more supply but demand is not there. This whole charade is about to blow up. The government has to tell banks to work with landlords. Who can in turn work with companies. Who can in turn work with employees.
Break one link in that chain, and America as we know it is done. It’s not just malls that are going to be in trouble. Commercial office space will most likely take a beating as well.
For the full transcript go to https://financearmageddon.blogspot.com