London Analyst Says There’s a CRE Bubble
While it’s generally accepted that residential real estate experienced a massive bubble, few have argued that commercial real estate’s seven-year bull run had lost touch with reality. But now a London analyst–based on looking at commercial real estate derivatives is saying just that.
“Commercial real estate is a full-blown bubble that feels very much at a bursting point,” said Christian Stracke, an analyst in London at CreditSights Inc., a fixed-income research firm. “There’s a fairly toxic mix of factors at work.”
There’s been a lot of stories about various commercial real estate indices of late. S&P updated its indices through August this week, which showed values still rising. The Moody’s/MIT index, meanwhile, showed a decline. And deal volume has dropped off significantly.
(Spotted at Mish’s Global Economic Trend Analysis.)
Related Topics: News, Investment, Research, Commentary, Retail Real Estate
