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IPFS News Link • Economy - Economics USA

Billionaire CEO sees $1 trillion in commercial real estate defaults coming...

• Fortune

Cantor Fitzgerald CEO Howard Lutnick said the Fed's interest rate hikes are a "steamroller," and "generational change" is coming to real estate.

Rising interest rates, the remote work trend, and the dominance of e-commerce sellers have combined to hammer the commercial real estate market over the past few years. Sky-high office and retail space vacancies are plaguing owners in this new environment, rents are plummeting, and borrowing costs have soared. As a result, U.S. commercial real estate prices have fallen 11% since the Federal Reserve began raising interest rates in March 2022, the IMF reported last week, the worst decline in over 50 years.


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