Ongoing weakness in the office sector will cost US banks as much as $250 billion.
AdvertisementAdvertisementAlso weighing on the commercial real estate market is higher interest rates, which should put pressure on landlords that have to refinance their loans in the near term.
Most owners of commercial real estate have been able to take advantage of the near-zero rates over the past decade.
But other areas of the commercial market should remain solid, like industrial real estate, multifamily housing, and data center spaces, according to Bass.
When you look at multifamily, multifamily is doing really well," he said.
Persons:
Kyle Bass, Bass, multifamily, it's
Organizations:
Service, Hayman Capital Management, Bloomberg, Bass
Locations:
Wall, Silicon