Posted BY: Jasmine | NwoReport
The U.S. commercial real estate (CRE) market may crash soon and cause a ripple effect that could lead to a downturn as significant as the 2008 crisis, according to a prominent real estate investment executive.
Speaking in an interview last week, Patrick Carroll, CEO of the real estate investment firm Carroll, told CNBC that the market would likely turn sour in the coming years as large amounts of commercial mortgage debt hit maturity.
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In recent weeks, industry analysts and executives have issued warnings since the fall of Silicon Valley Bank and said large amounts of commercial mortgage debt held by banks would have to be refinanced. A report from Business Insider noted that roughly 80 percent of commercial property debt is held by small- or medium-sized banks.
“Unfortunately, in the situation we’re in, things need to bottom out, and they haven’t bottomed out yet,” Carroll told the broadcaster on April 13.
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