Weakening in Commercial Real Estate Debt

Weakening in Commercial Real Estate Debt

Came across an interesting article in the WSJ recently. It appears that the underwriting standards of lenders for commercial property became somewhat lax over the last few years, and there is a weakening in commercial real estate debt. This is very similar to as they did for residential lenders. Granted, the commercial debt outstanding ($3.4 trillion) is somewhat smaller than residential property debt in the US ($11.2 trillion). But it’s larger than US consumer credit outstanding ($2.6 trillion).

Weakening in Commercial Real Estate Debt

What makes the weakening in commercial real estate debt worrisome is that banks hold roughly 50% of outstanding commercial debt. The banks are heavily invested in this debt.
So many financial institutions may not be out of the woods yet, as assets they expected to be safer turn out not to be so, in a weakening economy with declining consumer spending.
Weakening in Commercial Real Estate Debt

ARTICLES YOU MIGHT LIKE

Quotes Every Financial Leader Needs to Read

A few weeks ago, I started another series of our Financial Leadership Workshop, and in Day 1, we discuss that paradigm shift that needs to take place to go from accounting to financial leadership. So, I compiled all the quotes from all of my curriculum that make me think… How can I lead my company differently? What can I

Read More »

The Future of the Accounting Workforce

See Also: Accounting Income vs Economic Income Accounting Fraud Prevention using Quickbooks Accrual based Accounting American Institute of Certified Public Accountants Auditor The Future of the Accounting Workforce Firms who are hiring new accountants or accounting majors have to understand where the newer generations are “coming from,” as a Boomer (born 1946-1964) might say, to target a style that will bring out the next

Read More »

Product Life Cycle Stages

See also: Product Life Cycle Company Life Cycle Why You Need a New Pricing Strategy Increasing Pricing on Products What is the Product Life Cycle? A product life cycle includes stages the product experiences throughout its lifetime – from conception of the idea to the decline and abandonment of the product. Some products experience longer

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

SHARE THIS ARTICLE
Share on facebook
Share on twitter
Share on linkedin

JOIN THE NEXT STRATEGIC CFO™ SERIES

Strategic CFO™ Financial Leadership Workshop
The Art of the CFO®

Days
Hours
Min
Sec

June 13th - 16th 2022