Here’s the latest doom and gloom on commercial real estate, courtesy of Mack-Cali Chair William Mack:
zerohedge: Some points from Willam Mack:
- The value of real estate from the top is down anywhere between 25% and 75% (or more)
- The hardest hit in the CRE “food chain” is raw land, after that hotels, office, retail and industrial. Least affected multi-family residential (don’t tell Stuy town residents).
- The consumer confidence reflation propaganda machine will take a long time
- The CRE crisis will hit a pinnacle when $500-700 billion of re-equitization becomes needed in a few years. Where that equity will come from is unknown as the US will need a lot of foreign investors to achieve this equity bubble reflation, and they are not there due to a foreigner-unfriendly investment regime.
Below, video of William Mack speaking on CNBC: