DiscoverForward GuidanceCommercial Real Estate Is In Serious Trouble | Nick Halaris
Commercial Real Estate Is In Serious Trouble | Nick Halaris

Commercial Real Estate Is In Serious Trouble | Nick Halaris

Update: 2023-03-30
Share

Description

Nick Halaris, President of real estate investment firm Metros Capital, joins Jack to share insight on the challenges commercial real estate faces after a surge in interest rates and the fall of two U.S. banks.


The phrase “commercial real estate” is a catch-all terms that refers to offices, apartment buildings (“multi-family”), retail, and industrial spaces. Unlike residential real estate, which is typically financed with long-term fixed-rate mortgages, a lot of commercial real estate was financed with floating rate debt, which means that as interest rates rose last year, the interest expense of some commercial real estate developers rose dramatically. Halaris argues that the turmoil in the banking system will likely induce banks to tighten their lending, which would inflict further hardship onto commercial real estate, much of which is financed via smaller regional banks. 


Filmed on Tuesday, March 28, 2023.

____

Nick Halaris website: https://nickhalaris.com/

Profit+ Subscribe Link: https://nickhalaris.beehiiv.com/

Nick Halaris on Twitter: https://twitter.com/NickHalaris

Nick Halaris on LinkedIn: https://www.linkedin.com/in/nick-halaris-4a25b93/

____

Follow Jack Farley on Twitter https://twitter.com/JackFarley96

Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance

Follow Blockworks on Twitter https://twitter.com/Blockworks_

____

Use code GUIDANCE10 to get 10% off Permissionless 2023 in Austin:

https://blockworks.co/event/permissionless-2023

____

Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/

____

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:

https://rb.gy/5weeyw

____

Market commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos

____

Timestamps:


(00:00 ) Intro

(00:25 ) What Is Commercial Real Estate?

(03:20 ) Interest Rates Have A Huge Impact on Real Estate Valuations

(11:48 ) "Commercial Real Estate Is In Serious Trouble"

(16:58 ) Delinquency Rates Are Rising...

(19:13 ) Real Estate Is No Longer An Inflation Hedge

(22:45 ) Permissionless Ad

(23:48 ) Real Estate "Cap Rates" And Why They Are So Often Misunderstood

(26:53 ) "Accounting Games" In Real Estate

(35:02 ) How Bank Turmoil Will Impact Real Estate

(38:42 ) The End Game For Real Estate

(44:30 ) "it's Really Hard To Get A Loan"

(46:37 ) Prices Will Go Down More

(48:36 ) Blockworks Research Ad

(49:36 ) Silver Lining: Rates Could Go Down

(53:33 ) Retail Real Estate (Shopping Malls, etc.)

(54:39 ) The Housing Market Will Probably Remain Strong

(59:29 ) Private Equity's Investment Into Housing

(01:01:51 ) Nick Halaris' Newsletter, Profit Plus

(01:04:25 ) Closing Thoughts On Rising Interest Rates

____

Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Comments 
In Channel
loading
00:00
00:00
x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

Commercial Real Estate Is In Serious Trouble | Nick Halaris

Commercial Real Estate Is In Serious Trouble | Nick Halaris

Blockworks