Dr. Peter Linneman, Leading Economist, Professor Emeritus, The Wharton School of Business
The Walker Webcast
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The $750 Billion in Commercial Real Estate Debt
There's $4.4 trillion of commercial real estate debt outstanding, and 19% of that is to office space. The historic relationship between job growth and absorption has been broken in the last four years. That makes underwriting really hard for lenders who are trying to get their money back or an interest rate. And so I can imagine entrepreneurs willing to take that bet that the historic relationship returns. Unfortunately, they want some debt. We don't know how big our problems are going to be.
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