This chapter delves into the potential consequences of commercial real estate debt on smaller and regional banks, predicting the possibility of numerous banks failing or requiring acquisition. It also explores the winners in this scenario, such as Blackstone, while discussing the importance of embracing creative destruction and letting go of outdated office buildings.
The commercial real estate market has been upended by changing office habits and rising interest rates. For years, lenders and global investors did not have to confront these plunging building values. But with deals picking up again, the reality can no longer be ignored.
On today's Big Take podcast, Bloomberg real estate reporters Natalie Wong and Patrick Clark share how these losses may ripple across the global financial system.
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