Concerns are mounting among Wall Street economists and industry leaders about the future of the commercial real estate market. A slump in the market has been a topic of discussion, with some economists having warned of the speculative nature of the market two years prior. The strain on the banking system due to commercial real estate is anticipated to potentially result in further quantitative easing measures. Cantor Fitzgerald CEO Howard Lutnick foresees a challenging two-year period ahead, predicting defaults that could amount to $700 billion as lenders may be forced to sell, leading to a generational shift in the real estate sector. Meanwhile, a Fortune article cited a billionaire CEO's prediction of up to $1 trillion in commercial real estate defaults over the next 18 months to 2 years. Additionally, there is a report of a hedge-fund star placing bets on commercial-real-estate debt, and the mention of $SA suggests market interest or impact related to Seabridge Gold.
The wager one hedge-fund star is placing on commercial-real-estate debt https://t.co/z7Fyakzx7j
Billionaire CEO: $1 trillion in commercial real estate defaults coming next 18 months to 2 years | Fortune https://t.co/NavSoVFysf
Commercial real estate will put enormous pressure on the banking system which we think will end up in the Fed's lap. Another reason we have not seen the last of QE. $SA https://t.co/bkooiu8rDJ
Cantor Fitzgerald CEO Howard Lutnick on commercial real estate predicts a "very ugly" two years ahead. "I think $700 billion could default … The lenders are going to have to do things with them. They're going to be selling. It's going to be a generational change in real estate…
1/9 "Wall Street economists are also ringing alarm bells about how long the real-estate slump will last." In fact some economists were warning two years ago that in a speculative market (i.e. one in which the main reason for buying was... https://t.co/VcuRODYjI6 via @WSJ