The speakers discuss the current state of commercial real estate, emphasizing the impact of empty office buildings on its value. They highlight the scale of the problem, with trillions of dollars' worth of loans reaching maturity and buildings losing their value, posing challenges for refinancing and increasing the likelihood of borrowers investing more money or relinquishing ownership to lenders.
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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