Opinion
Why halting an office real estate crash needs creative ideas
New York’s stranded legacy office space could be converted into accommodation if harsh zoning rules can be waived.
Gillian TettContributorWhen the big American banks report earnings this month – starting with JPMorgan and Citi last week – investors will nervously scour them for signs of commercial real estate pain.
After all, seemingly everybody from the US Federal Reserve on down has warned of a CRE reckoning in recent months. That is partly because rates have jumped 500 basis points in the past 18 months, and some $US270 billion ($395 billion) of US CRE loans come due this year, according to Trepp (or $US1.5 trillion in the next three years, according to Morgan Stanley).
Financial Times
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