In your weekly warning: commercial real estate is still the next shoe to drop.
This time, the warning comes from Daniel Tishman, chairman and CEO of the Tishman Construction Corporation.
“Trillions of dollars are involved in commercial loans. The roll over of those loans in the next 5-7 years is going to happen and the money just isn’t there for refinancing,” Tishman told CNBC.
So yes, he’s probably right and yes, as we wrote last month,
with maturing mortgages, easing delinquencies, increased unemployment, falling property valuations and tightening credit, it’s no secret here that there will be more substantial writedowns.
But the real question remains how much exposure banks have to CRE–which is hard to decipher as they remain tight lipped about the matter and which is the only way to measure how big a shoe it will be.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.