Deconstructing Commerical Real Estate
With significant repricing across all commercial real estate (CRE) sectors, normalizing rent growth, and rising expenses, it’s time to revisit and reassess the CRE space. Get our thoughts on the CRE market today, implications for the banking sector, and risk factors we’re monitoring.
This episode features PGIM Fixed Income’s David Jiang, U.S. Investment Grade Credit Research Analyst, Jason Pan, CFA, FSA, Securitized Products Credit Research Analyst, and host, Tom Porcelli, Chief U.S. Economist.
Recorded on March 12, 2024.
Run-of Show
00:00 Introduction
01:04 Where are things in the CRE space right now?
02:32 How close are we to trough?
03:30 What are the different buckets of CRE?
05:24 Where are the largest risks?
07:10 Turning to the banking side
09:21 What cities are more concentrated in risks?
11:21 Is CRE a first order risk?
13:41 Is this similar to what happened during the GFC?
17:17 Closing remarks
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