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That's not to say predictions of a commercial real estate rebound are a sure bet. Here are four signs that support Gray's prediction that the commercial real estate market may be bottoming. (New York Community Bank had previously purchased $2.7 billion in Signature's loans and deposits, but not the real estate loans.) According to David Seifert, partner at private equity real estate firm Velocis, there are some sweet deals to be had in secondary sales of private-equity funds tied to real estate. The road aheadWhere Gray sees signs of bottoming, others think commercial real estate has much further to fall.
Persons: Warren Buffett, Buffett, Paul Getty, Getty, Steve Mnuchin —, Blackstone, Mnuchin, Donald Trump's, George Soros, John Paulson, It's, Jonathan Gray, Jim Garman, That's, Barry Sternlicht, Gray, Tracy Chen, Chen, BGO, secondaries There's, Ares, Brian King, King, David Seifert, Seifert, Velocis, Goldman Sachs, Dan McNamara, McNamara, Scott Rechler, wallop, Janet Yellen, Rechler, there's Organizations: Business, Goldman, Reuters, Starwood, Brandywine Global, Federal Reserve, . Bank, New York Community Bank, FDIC, Signature Bank, Community Bank, Fund Management, Community Preservation, New, Commercial Observer, Blackstone, Homes, Digital Realty, Polpo, RXR Locations: Blackstone, , New York, New York, BREIT, Real, Velocis
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe real estate debt problem still hasn't been dealt with, says RXR Realty CEO Scott RechlerScott Rechler, RXR Realty chairman and CEO, joins 'Squawk Box' to discuss the state of the commercial real estate market, why he's expecting a 'slow moving train wreck' for regional banks, the weight of real estate debt, and more.
Persons: Scott Rechler Scott Rechler, he's Organizations: RXR
A real estate boss expects at least 500 banks to fail or be taken over in the next two years. Scott Rechler, CEO of RXR, said the maturing of commercial real estate loans would hit smaller lenders. Commercial real estate has been hit by declining asset prices, costlier borrowing, and tighter lending. AdvertisementHundreds of American banks will collapse or be taken over by 2026, a top real estate executive predicted. Silicon Valley Bank, Signature Bank, and Silvergate Bank folded last spring after worries about their health spurred a wave of deposit withdrawals.
Persons: Scott Rechler, , Fortune, I'm, It's, Jamie Dimon's Organizations: Service, Deposit Insurance Corporation, Silicon Valley Bank, Signature Bank, Silvergate Bank, New, New York Community, Federal Reserve, JPMorgan Locations: New York
Watch CNBC's full interview with RXR Realty CEO Scott Rechler
  + stars: | 2024-02-06 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with RXR Realty CEO Scott RechlerRXR Realty CEO Scott Rechler joins 'Squawk on the Street' to discuss why Rechler's been so outspoken about troubles in the commercial real estate sector, if it's too early to put capital to work in real estate, and more.
Persons: Scott Rechler RXR, Scott Rechler, Rechler's, it's Organizations: RXR
RXR Realty CEO on commercial real estate risks
  + stars: | 2024-02-06 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRXR Realty CEO on commercial real estate risksRXR Realty CEO Scott Rechler joins 'Squawk on the Street' to discuss why Rechler's been so outspoken about troubles in the commercial real estate sector, if it's too early to put capital to work in real estate, and more.
Persons: Scott Rechler, Rechler's, it's Organizations: RXR
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe economy and markets have been addicted to ultra low interest rates, says RXR's Scott RechlerHosted by Brian Sullivan, “Last Call” is a fast-paced, entertaining business show that explores the intersection of money, culture and policy. Tune in Monday through Friday at 7 p.m. ET on CNBC.
Persons: RXR's Scott Rechler, Brian Sullivan, Organizations: CNBC
Regional bank stocks, in particular, gained as much as 35% before the bond warnings and downgrades began. The higher interest rates bond analysts cited hurt profits some, but most banks' net interest income and margins were higher than a year before. The ratings actions pushed the regional bank stock index 10% lower for the month-long period ending Sept. 8, according to Morningstar (the Moody's bank warning was issued August 7). By any reckoning, the argument about banks is about two things: Interest rates and real estate, specifically office buildings. The average regional bank stock rose 8% after earnings, Morgan Stanley said, with banks beating profit forecasts by an average of 5%.
Persons: Morningstar —, downgrades, Morgan Stanley, Jill Cetina, Cetina, Banks, Goldman Sachs, Jan Hatzius, Scott Rechler, Jeff Greene, Alexander Yokum, Dick Bove, Bove, Yokum Organizations: First, JPMorgan, Bloomberg, Getty, Moody's Investors Service, Poor's, Fitch, Morningstar, Federal Reserve, Fedwatch, RXR, Research, Odeon Capital Locations: First Republic, Regional, Moody's, U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRXR Realty CEO on commercial real estate: There are going to be losses for banks and investorsScott Rechler, RXR Realty chairman and CEO, joins 'Squawk Box' to discuss the state of commercial real estate, which has been slowly ticking back up with more companies requiring employees to return to work in person, the impact on banks, and more.
Persons: Scott Rechler Organizations: RXR
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMarket sentiment around commercial real estate is worse than the reality, says RXR's Scott RechlerScott Rechler, RXR chairman and CEO, joins 'Last Call' to talk a rise in return-to-office in the Midwest and how other regions of the country are stacking up.
Persons: RXR's Scott Rechler Scott Rechler Locations: Midwest
NEW YORK, July 18 (Reuters Breakingviews) - Lenders are steering clear of buildings that face reckonings from remote working, pushing prices down. In this Exchange podcast, real estate investor Scott Rechler argues that it will take financial and civic engagement to make empty space desirable for living – and investing. Listen to the podcastFollow @jennifersaba on TwitterSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Sharon Lam, Thomas Shum and Oliver TaslicOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Scott Rechler, Sharon Lam, Thomas Shum, Oliver Taslic Organizations: YORK, Reuters, Twitter, Thomson
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFundamentally we need the market to have more liquidity: RXR's Rechler on commercial real estateScott Rechler, RXR chairman and CEO, joins 'Closing Bell Overtime' to talk commercial real estate, the impact of the credit crunch, and more.
Persons: Scott Rechler
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCredit crunch compounded by office vacancies could have broad economic impact: RXR's Scott RechlerScott Rechler, New York Fed board member and RXR Realty chairman and CEO, joins 'Last Call' to discuss how a rise in office vacancies could have sweeping implications for the economy.
Persons: RXR's Scott Rechler Scott Rechler Organizations: RXR's Scott Rechler Scott Rechler , New York Fed, RXR Realty Locations: RXR's Scott Rechler Scott Rechler , New
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCommercial real estate refinancing 'has been a slow moving train wreck', says RXR's Scott RechlerScott Rechler, RXR chairman and CEO, joins 'Last Call' to discuss commercial real estate, the credit crunch, and the impact of empty office buildings on the banking sector.
A real estate investment fund recently defaulted on $750 million of mortgages for two Los Angeles skyscrapers. And a big New York landlord is trying to extend the deadline for paying down a loan for a Park Avenue office tower. Office districts in nearly every U.S. city have been under great stress since the pandemic emptied workplaces and made working from home common. But in recent months, the crisis has entered a tense phase that could damage local economies and cause financial hits to real estate investors and scores of banks. Lenders are increasingly reluctant to make new loans to owners of office buildings, especially after the collapse of two banks last month.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCredit needs expansion with new loans for current interest environment, says RXR's Scott RechlerScott Rechler, RXR chairman and CEO and board member of The New York Fed, joins 'Squawk on the Street' to discuss the state of commercial real estate, the ongoing credit crunch, and bank earning's numbers.
"There's a lot of headaches about calamity in commercial real estate," said Kevin Fagan, director of commercial real estate analysis at Moody's Analytics. But credit in commercial real estate has performed well until now, and it's far from clear that U.S. credit issues spreading outward from real estate is likely. Analysts raised concerns that developers might default on a big chunk of $3.1 trillion of U.S. commercial real estate loans Goldman Sachs says are outstanding. "We're well aware of the concentrations people have in commercial real estate," Powell said at a March22 press conference. But there are reasons to believe lending issues in commercial real estate will be contained, Fagan said.
Commercial real estate is probably the next pain point for regional banks and the stock market, according to BofA. The bank noted that US regional banks account for 68% of all commercial real estate loans. The weakness in commercial real estate is evidenced in current market prices for stocks and debt tied to the sector. This is a perfect storm for regional banks because they have so much exposure to commercial real estate loans. According to Bank of America, US regional banks account for 68% of commercial real estate loans, much more than their mega-cap banking peers.
The real-estate sector has also been hard hit by Fed rate rises and commercial real estate has also been hobbled by the shift away from in-office work during the pandemic. Rechler serves as what’s called a Class B director on the 12-person panel of private citizens who oversee the New York Fed. Each of the quasi-private regional Fed banks are also operated under the oversight of the Fed’s Board of Governors in Washington, which is explicitly part of the government. The boards overseeing each of the regional Fed banks are made up of a mix of bankers, business and non-profit leaders. Their most visible role is helping regional Fed banks find new presidents, although bankers who serve as directors are by law not part of this process.
The real-estate sector has also been hard hit by Fed rate rises and commercial real estate has also been hobbled by the shift away from in-office work during the pandemic. Rechler serves as what’s called a Class B director on the 12-person panel of private citizens who oversee the New York Fed. Each of the quasi-private regional Fed banks are also operated under the oversight of the Fed’s Board of Governors in Washington, which is explicitly part of the government. The boards overseeing each of the regional Fed banks are made up of a mix of bankers, business and non-profit leaders. Their most visible role is helping regional Fed banks find new presidents, although bankers who serve as directors are by law not part of this process.
RXR Realty CEO points out real estate's biggest problems
  + stars: | 2023-03-20 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRXR Realty CEO points out real estate's biggest problemsScott Rechler, CEO of RXR Realty, joins 'Squawk Box' to discuss the pressures in the commercial real estate market, why the real estate market was surprised by the higher rate environment, and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSome buildings post-pandemic are 'not going to be competitive as office buildings anymore' says RXR's RechlerScott Rechler, CEO of RXR Realty, joins 'Squawk on the Street' to discuss his thoughts on return to work and his outlook for commercial real estate.
Real estate and private equity leaders, who have long helped to fill Sinema's campaign coffers, contributed to a healthy cash haul for the senator in the final months of last year. At the lunch, Sinema discussed the incoming Congress and how the tight margins in both chambers could create gridlock, according to attendees. Sinema's campaign had already seen more than $2 million from the securities and investment industry since the 2018 election cycle. The Sinema campaign saw dozens of contributions totaling over $145,000 from people who work at Apollo Global Management, another giant private equity firm, since October. Suzanne Clark, CEO of the massive pro-business lobbying group U.S. Chamber of Commerce, also donated $1,000 to Sinema's campaign on Dec. 31, the new FEC filing shows.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFocus real estate investments on what's competitive in a post-Covid world, says RXR's Scott RechlerScott Rechler, CEO and chairman of RXR Realty, joins 'Squawk on the Street' to discuss real estate demands for businesses returning to in-person work, the impact of layoffs and office demand, and the growth potential for real estate developments.
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