Except now those commercial buildings don't have enough office space renters to make their mortgages. The banks are going to be left holding the bag. Can't refinance buildings that don't produce enough income.
Weekly Reminder: The economy is great, inflation is fake and gas is cheap.
- Thread starter Analbumcover
- Start date
Up In Smoke
Well-Known Member
Perfect. Call the loans, seize the property and liquidate. Win, win and win. Tax loses are a beautiful thing.
catstalking
ie qt
here let me sum up literally every post you make:
>"everything is fine, nothing can ever go wrong, we're all going to make it"
there i've saved you a lot of posting in the future
Up In Smoke
Well-Known Member
It's called free market capitalism. If that worries you, let's shut the system down.
catstalking
ie qt
bro put down the ayn rand, we haven't had a free market system in a long, long, long time
i'm 99% a permabull, but your posts are next level paul krugman-tier gaslighting
Up In Smoke
Well-Known Member
More than 60% of all businesses operate without making a profit and 50% of publically traded companies are unprofitable. Somehow the sky isn't falling.
catstalking
ie qt
here let me help you:
debt
Commercial Inside Release
Well-Known Member
He's hoping for a CRE crash, so he can cash in on the next hand out, with some creative paperwork, and optimistic tax returns.
Up In Smoke
Well-Known Member
Not debt, but tax exposures.
Liquidate? Who is going to buy property they can't rent? You are aware that a lot, and I mean a lot, of commercial buildings have less than 50% occupancy with many much less than 50%? Covid pushed a lot of companies into having employees work from home. They found they could operate just fine doing that and it was saving them serious money. The genie is out of the bottle. "60 Minutes" even did a segment on it a couple of weeks ago but this has been pointed out for over a year now. About the only option seems to be to turn these buildings into apartments and condos. Already happening. In NYC the only buildings that seem to be maintaining occupancy are the prestigious addresses in certain neighborhoods.
Up In Smoke
Well-Known Member
Opportunities around every corner.
"Follow the yellow brick road, follow the yellow brick road!"
PT Car Washer
Well-Known Member
"The sky is falling, the sky is falling."
It's not conjecture. It's an issue with trillions of dollars worth of commercial real estate across the country. The decisions made to shut down everything in the pandemic, pushing companies to purchase equipment to allow workers to work from home, have had unintended consequences that are biting primarily regional banks. This alone could cause a financial collapse.
Up In Smoke
Well-Known Member
The real estate will only lose a fraction of it's value and the banks underwrite their loans as required by law. You make it sound like the sheriff comes and padlocks the doors.
I'm just pointing out what is being widely reported. Loans are coming due and office building owners can't meet their mortgages. Remember the 2008 crisis was based on millions of home owners not being able to meet their mortgage payments. Same principle but this time it's commercial real estate.
Next Day Err
Banned
So what's the go-to bet here? You shorting the markets?
I'm not a wealthy UPSer.
Up In Smoke
Well-Known Member
There are dozens of private equity and real estate investment trusts that are poised to step in and buy these properties when the price is right.
What do you figure they'll do with these properties, convert to apartments?
