Commercial real estate is in a "Category 5 hurricane" from rate hikes, Barry Sternlicht said. The commercial real estate industry is in a "Category 5 hurricane" from the the Federal Reserve's interest rate hikes, according to billionaire investor Barry Sternlicht. After months of tight monetary policy, the Fed paused its interest-rate hiking cycle in June amid rising fears about the commercial real estate and banking sectors. A combination of higher interest rates, a credit squeeze, and remote work trends are squeezing the commercial real estate industry. Still, he remains optimistic: "When the Fed basically tells you they're done, I think real estate will catch a very firm bid."

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Persons: Barry Sternlicht, David Rubenstein, Sternlicht Organizations: Bloomberg, Sternlicht's Starwood Capital Group, Starwood Capital, Fed Locations: Atlanta