Commercial Real Estate Distress Imminent, Experts Say

The commercial real estate market has yet to hit the low point in distressed debt.
Commercial Real Estate Distress Imminent, Experts Say
When the market comes back, it may come back very fast, said James McCarthy, chief investment officer, Strategic Capital Solutions, LLC. Jan Jekielek/The Epoch Times
Charlotte Cuthbertson
Charlotte Cuthbertson
Senior Reporter
|Updated:
<a href="https://www.theepochtimes.com/assets/uploads/2015/07/cartoon_medium.jpg"><img src="https://www.theepochtimes.com/assets/uploads/2015/07/cartoon_medium.jpg" alt="This is how Steven Herman, partner at law firm Cadwalader, Wickersham & Taft LLP, sees the real estate industry woes. He said there is a natural progression with real estate, and the chinks in the armor began on the July 4 weekend in 2007. Lending stopped, then there were defaults on land, construction loans got 'out of balance;' condos are 'going sideways,' retail is facing difficulties, followed by hotels; and CBD offices are starting to really feel the pinch. (Vivian Song/The Epoch Times)" title="This is how Steven Herman, partner at law firm Cadwalader, Wickersham & Taft LLP, sees the real estate industry woes. He said there is a natural progression with real estate, and the chinks in the armor began on the July 4 weekend in 2007. Lending stopped, then there were defaults on land, construction loans got 'out of balance;' condos are 'going sideways,' retail is facing difficulties, followed by hotels; and CBD offices are starting to really feel the pinch. (Vivian Song/The Epoch Times)" width="320" class="size-medium wp-image-90778"/></a>
This is how Steven Herman, partner at law firm Cadwalader, Wickersham & Taft LLP, sees the real estate industry woes. He said there is a natural progression with real estate, and the chinks in the armor began on the July 4 weekend in 2007. Lending stopped, then there were defaults on land, construction loans got 'out of balance;' condos are 'going sideways,' retail is facing difficulties, followed by hotels; and CBD offices are starting to really feel the pinch. (Vivian Song/The Epoch Times)
NEW YORK-The commercial real estate market has yet to hit the low point in distressed debt and and there is a resistance to accept the new reality, said panelists at a Golden Networking event recently in New York.

“In each of the next four years there is over $300 billion of real estate debt that’s going to come due,” said Steven Herman, partner at law firm Cadwalader, Wickersham & Taft LLP.

Herman gleaned his statistics from talks he had with experts at Harvard University last month. “By 2013 they were talking about $1.4 trillion of real estate debt that’s going to mature.”

Snapshot of New Reality

Charlotte Cuthbertson
Charlotte Cuthbertson
Senior Reporter
Charlotte Cuthbertson is a senior reporter with The Epoch Times who primarily covers border security and the opioid crisis.
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