According to multiple recent reports, banks are very quietly selling out of CRE positions. Those reports are backed up by banking data which clearly shows an inflection in systemic loans in the space. Combined, we have strong evidence showing the second stage of the CRE bust has now started.

Eurodollar University's Money & Macro Analysis

Reuters Big US banks withstand Fed's commercial real estate shock scenario
https://www.reuters.com/markets/us/big-us-banks-withstand-feds-commercial-real-estate-shock-scenario-2024-06-26/

Federal Reserve Stress Test Results 2024
https://www.federalreserve.gov/publications/files/2024-dfast-results-20240626.pdf

NYT Office Building Losses Start to Pile Up, and More Pain Is Expected
https://www.nytimes.com/2024/06/06/business/office-building-foreclosures-losses.html

NYT Fearing Losses, Banks Are Quietly Dumping Real Estate Loans
https://www.nytimes.com/2024/06/24/business/commercial-real-estate-loans.html

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Phase 2 of the Commercial Real Estate Collapse Has Begun