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But where banks' exposure to commercial real estate is concerned, locating that fire may be difficult. Rising interest rates quickly increased the cost of borrowing for investors in commercial real estate, including offices and multifamily homes. It doesn't reveal details such as borrowers' track records, said Mark Hillis, a former chief risk officer for commercial real estate at JPMorgan. There's also varying concentration risk: the largest banks with commercial real estate exposure are more diversified, meaning that any losses won't be as devastating, Baker said. "We think very few banks will run into issues just from their commercial real estate exposure," Reidy said.
Persons: Michael Barr, Jerome Powell, Todd Baker, Mark Hillis, Clifford Rossi, Robert H, Rossi, Baker, There's, Hillis, multifamily, haven't, You'll, Banks, you'll, Rebel Cole, NYCB, Matt Reidy, Reidy, Cole Organizations: Federal Reserve, Business, York Community Bank, SEC, Richman Center for Business, Law, Columbia University, JPMorgan, Smith, Smith School of Business, University of Maryland, Mortgage Banker's Association, Bank, Signature Bank, First, Countrywide Bank, Washington Mutual, Citigroup, multifamily, Florida Atlantic University, Federal, Regulators, TCRE, Equity RCRE, Community Bank, Provident Bank NJ, Merchants Bank of Indiana, Apple Bank for Savings, Oceanfirst Bank, Independent Bank, Lakeland Bank NJ, Ozk, Washington Federal Bank WA, Axos Bank, Sandy Spring Bank, Columbia Bank NJ, Farmers, Merchants Bank of CA, Popular Bank, Pacific Premier Bank, United Bank, Trust, Rockland Trust, Umpqua Bank, ServisFirst Bank, Bell Bank, Stellar Bank, National Bank of, National Bank of Florida FL, New York Community Bank Locations: multifamily, Basel, CRE, California, Rockland, National Bank of Florida
The Cheesecake Factory is more than a staple of US shopping malls – it's a sign of financial health. Malls without a Cheesecake Factory were much more likely to be behind on their loans, Moody's found. AdvertisementAdvertisementThe Cheesecake Factory first opened in Beverly Hills, California, in 1978 and has since grown to more than 200 restaurants across North America. The chain is typically located in or near shopping malls — a commercial real estate segment that has seen a rough few years with changing shopping patterns. To see how that relationship plays out in real life, I headed off for lunch at my local Cheesecake Factory at the West Towne Mall in Madison, Wisconsin.
Persons: Moody's, , Matt Reidy, Reidy Organizations: Service, Sears, Nordstroms, Apple, Factory, West Locations: Beverly Hills , California, North America, West Towne, Madison , Wisconsin
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