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The Debt Crisis Looming in Commercial Real Estate

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John Gittelsohn and Natalie Wong discuss how higher interest rates are impacting the property market and commercial real estate on Bloomberg Television.

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45 Comments

45 Comments

  1. @paulsaragosa371

    December 16, 2023 at 10:06 am

    Red head keeps you up and away poor old 😂 poneys Poor man who is thy slow 🐌 sluggish

  2. @paulsaragosa371

    December 16, 2023 at 10:06 am

    Kaboom started to pray 🙏 🤲 🕍 🕌 ⛪️ 🛕 🙏

  3. @judyl.7811

    December 16, 2023 at 10:06 am

    0:35 how much commercial debt coming due and how it's going to hit.
    1:00 a lot of it is office debt and would be harder to refinance. because A, the cost of borrowing is up, B, the value of those building are down. Thus people are going to pay it or decide it's not worth it to refinance.
    1:45 commercial real estate debt comes due in next 18 months. Lenders and owners need to know exactly what to do and where values stand.
    some lenders and owners need to write down a big loss
    2:30 some asset-rich investors, such as Blackstone, Pimco … are they going to walk away or are they going to negotiate with lenders who have little other choice.
    3:00 where office values to recover. office market is real bad especially in tech-led industry. the remote work pullback. and a confluence of factors, such as people don't feel safe in downtown, the commute time.
    4:00 the number is record high leading the way across the country.
    default on loans 拖欠貸款項目

  4. @xw8138

    December 16, 2023 at 10:06 am

    Reduce the interest. What if foreigners take over 100% and turn into 100% Chinatown (then50%, they split with Mexico 20%, 20%, Russian, 10% other countries).😂😂😂

  5. @Emily-le2op

    December 16, 2023 at 10:06 am

    Putting well-earned money into the stock market cannot be over emphasized for first-time investors, the market is out of control and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.

  6. @defractal

    December 16, 2023 at 10:06 am

    This overdue correction is little more than the inevitable consequence of unmitigated rentier greed.

  7. @ronjr831

    December 16, 2023 at 10:06 am

    Nice video. Hopefully Natalie Wong will be on again !

  8. @605highsprings

    December 16, 2023 at 10:06 am

    Boo hoo 😢 the greedy landlords have to default

  9. @nwbw217

    December 16, 2023 at 10:06 am

    These elite scum destroyed the middle class and pushed small companies out of business because rents were too high. Now the tech darlings they rented to are abandoning ship and there is no one left willing to rent space anymore. Let them burn and their net worth with it!

  10. @matthewg8168

    December 16, 2023 at 10:06 am

    And all these idiots who paid 60 70,000 over asking for their house deserve to have the issues they have without getting inspections.

  11. @matthewg8168

    December 16, 2023 at 10:06 am

    Good I’m glad commercial real estate is collapsing they deserve it

  12. @vasantos-re4hb

    December 16, 2023 at 10:06 am

    Guys, this is easy. LOWER RENT to increase occupancy. How is this hard?

  13. @gregorysagegreene

    December 16, 2023 at 10:06 am

    Gonna' be hard to refi all that free fiat,
    that was used to rape & pillage the real-world economy for absolutely no true value in return.
    🤔🙄 Oh well, back to actual productive work.

  14. @Mogardie

    December 16, 2023 at 10:06 am

    No one is going to pay $100k a month for an office space anymore when there employees don’t want to come in. Drop that number to $30k a month and people will start renting them

  15. @lexperz5256

    December 16, 2023 at 10:06 am

    Let it crash ….

  16. @wolfheadedconjuror

    December 16, 2023 at 10:06 am

    Nathalie is not wong about commercial RE

  17. @brunomanco7529

    December 16, 2023 at 10:06 am

    And C the income from those 20% ocupance rate is much lower and dont cover interest and principal payments.

  18. @AS-rg9ly

    December 16, 2023 at 10:06 am

    Okay, but why not convert CRE into AFFORDABLE APARTMENTS?

    Large corporations that aim to keep employees local should lobby to convert some CRE while they have bargaining power!

  19. @DanBurgaud

    December 16, 2023 at 10:06 am

    Property going down = No money
    tsk tsk… tents then

  20. @Madmun357

    December 16, 2023 at 10:06 am

    The company where I work isn't going to renew leases next year in dozens of states. We have 90% of our people working from home.

  21. @pberPSR

    December 16, 2023 at 10:06 am

    why not negotiate with local governments to have contractors EMPLOY some homeless persons to renovate the buildings? why must BILLIONAIRES hoard this property which can be used to solve a massive crisis?

  22. @Gsoda35

    December 16, 2023 at 10:06 am

    those properties need to be devaluated to get affordable for more people. maybe change the way buildings are valued.

  23. @Dnichols619

    December 16, 2023 at 10:06 am

    And here is the real reason WFH mandates are being challenged. All of these asses have money tied up in commercial real estate. Once again, we are going to allow the diligent idiots business class to make work for themselves at everyone else's expense, instead of just ripping off the bandage and cleaning the wound properly. They need to create an artificial scarcity to protect their own financial interests, and unlike the rest of us, they are allowed to have "rich people unions" to game that system for them, by essentially fixing the market price (which is de jure illegal, but of course laws don't apply to parasites.) Worth noting this entire industry is just a job placement program for unscrupulous, lazy deceivers and their sociopathic bosses who sit in their palatial office all day drinking, watching TV and picking their ass before verbally sparring with rival-buddies. They call this "work" because as a culture they are unfamiliar with the concept. Worth noting they don't actually produce anything except scarcity and debt.

    TL;DR society's teat isnt giving those entitled idiots milk fast enough when they cry and shit their pants, so those ungrateful useless charlatans are going to bite the nipple.

  24. @KarmaFarma

    December 16, 2023 at 10:06 am

    Love how everyone thinks they are these genius investors now. Whole market is rigged and you literally can’t predict anything. Investing now is like putting a blindfold on and throwing a dart only to have a market maker short your investment down 40%.

  25. @bencordell1965

    December 16, 2023 at 10:06 am

    Deluded

  26. @massimilianoirrati3917

    December 16, 2023 at 10:06 am

    Perfect Video, as always. I appreciate the level-headed approach you take to the news and the markets. A lot has changed and that's on everything but the truth is I don't even care much about bullish or bearish market anymore because Mrs. Vera Richards got me covered as Bitcoin is on the rise now I am comfortably making 7btc monthly And Her partnership with TESLA makes it easy for me to Invest in prolific units of TESLA vehicles too…Its so overwhelming.

  27. @Jurgen24335

    December 16, 2023 at 10:06 am

    Investment in stocks is a great way to invest your money. The team is constantly checking the market for changes and make sure that you are always informed about the best time to invest. As a result, I have made more money than ever before, and I don't have to manage my portfolio on my own! Invest in stocks, it's worth it

  28. @dennett9

    December 16, 2023 at 10:06 am

    Companies that chose office space in second tier American cities to save money will now move into tier one cities at bargain rates.

  29. @Sparky5960

    December 16, 2023 at 10:06 am

    San Fran, LA and Chicago are warzones so commercial properties are done.

  30. @Makedonac007

    December 16, 2023 at 10:06 am

    I enjoy fine body
    so I order machined 4550 kg weight set
    from South Africa 🇿🇦 to P.E.I 🇨🇦
    only when on sale
    Amen

  31. @Makedonac007

    December 16, 2023 at 10:06 am

    got written up, lil'pablo did
    for this weeks 18 planes made it a slow week 🌵 ⛺️
    The many decades

  32. @Makedonac007

    December 16, 2023 at 10:06 am

    As long as publicly public grammar&fast good food is there, far few in two4one cool
    food is too expensive
    🎂 🥮 🍥 🥞 🧁 🍰
    Amen

  33. @keithjackson2035

    December 16, 2023 at 10:06 am

    So this is why they want to strong arm people into go back to the office.😂😂

  34. @AbAb-th5qe

    December 16, 2023 at 10:06 am

    Is an 'asset' that requires effort to maintain and no-one wants really an asset or is it a liability?

  35. @txbre8758

    December 16, 2023 at 10:06 am

    Time to feel the pain the rest of the country felt in 2008.

  36. @user-ob4em4ge6c

    December 16, 2023 at 10:06 am

    They left one sector off of their list. RESIDENTIAL. Down -9% this year alone, NATIONALLY. I wonder why they left that of their list….?

  37. @asdsad7015

    December 16, 2023 at 10:06 am

    How's work from home doing?

  38. @htin08

    December 16, 2023 at 10:06 am

    Keep calm and carry on. Cutting loose to stop losses is a sensible thing to do. However, it is a good time for bargain hunters.
    Btw, china is going to collapse soon. Cheer uo!

  39. @giannidc1207

    December 16, 2023 at 10:06 am

    This sounds a lot like a Chinese story of the past 3 years, but without government intervention, just federal interest rate increase

  40. @jackjanpour8532

    December 16, 2023 at 10:06 am

    20% of commercial real estate can be converted to residential. Do that and both problems are solved.

  41. @gmil2573

    December 16, 2023 at 10:06 am

    The government will need to get more aggressive in redistributing purchasing power from savers / taxpayers to failed risk takers. This will ameliorate the coming deflationary impulse.

  42. @tyrand

    December 16, 2023 at 10:06 am

    Good

  43. @JordiVallsribas

    December 16, 2023 at 10:06 am

    What happens with your microphones? And why are you shouting? Is there a big ventilator blowing in the studio?! 😅

  44. @reginaerekson9139

    December 16, 2023 at 10:06 am

    2:50 negotiating it as a business loss on their taxes.

  45. @williamcrossan9333

    December 16, 2023 at 10:06 am

    These journalists don't get it.
    The debt instruments are used by the rich, to hoover up all the assets for cents in the dollar.
    The debt holders are rubbing their hands together, at the prospect of obtaining these skyscrapers at 50% of the build cost.

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Market Stress Mostly Driven by Technicals, Says HSBC’s Kettner

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“It is an incredibly technically-driven market,” says Max Kettner, chief multi-asset strategist at HSBC. He doesn’t see any kind of fundamental catalyst, outside of earnings, calming some nerves around concerns about artificial intelligence. He speaks on “Bloomberg Surveillance.”
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Crypto On The Ballot, Liquid Hack Fallout, AI Crypto Commerce

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“Bloomberg Crypto” covers the people, transactions, and technology shaping the world of decentralized finance. Today’s guests: Blockstream Co-Founder & CEO Adam Back, Chainalysis Head of Research Eric Jarine, Jito Labs COO & Chief Legal Officer Rebecca Rettig, and Franklin Templeton Head of Innovation Sandy Kaul.

YouTube Chapters:

00:00 Crypto Markets opens
02:50 Adam Back, Blockstream CEO, on Bitcoin and Liquid Network
05:04 Blockstream’s Liquid Network Hack
06:00 AI and Crypto Security Risks
07:46 Bitcoin’s Quantum Computing Risk
09:49 Bitcoin’s Market Maturity
11:00 Adam Back on Satoshi Nakamoto Rumors
13:27 Eric Jardine, Chainalysis, on AI Agent Crypto Payments
14:04 Rise of AI Micropayments
15:34 U.S. Leads Agentic Commerce
16:58 AI Payments vs. Traditional Payment Rails
18:51 Crypto Policy After the Clarity Act
20:10 SEC, CFTC and Future Crypto Regulation
20:50 Agentic Payments and Stablecoins
22:54 Political Exchange: Crypto and Washington
23:57 Rebecca Rettig, Jito Labs, on Crypto Regulation
25:18 SEC and CFTC Rules After the Midterms
26:44 Clarity Act and the Ethics Debate
28:35 Why the Clarity Act Failed
30:15 Token Moment: Sandy Kaul, Franklin Templeton
30:43 Franklin Templeton’s Tokenization Strategy
31:40 Tokenized Funds and Agentic Payments
32:46 Tokenization and Traditional Finance
33:51 Competition on Blockchain Rails
35:15 Who Will Lead Tokenized Finance?
36:39 JPMorgan Expands JPM Coin to Ethereum
37:31 JPM Coin vs. Stablecoins
38:36 JPMorgan’s Blockchain Position
39:18 Stablecoins Disrupt Money Transfers
40:39 Immigration and the Remittance Industry
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Stocks Rotate as Tech & Chip Shares Slide

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The Close brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today’s guests are Charles Schwab Chief Investment Strategist Liz Ann Sonders, IDC Senior Director, Data & Analytics Nabila Popal, Susquehanna Senior Equity Research Analyst Mehdi Hosseini, KPMG US Chair & CEO Tim Walsh, Envestnet CIO Dana D’Auria, Hirtle & Co Founder & Executive Chair Jon Hirtle, Gerber Kawasaki Wealth & Investment Management President & CEO Ross Gerber, Blue Sky Productions President John McElroy, & Porsche CEO Michael Leiters.

Chapters:
00:00:00 Bloomberg The Close
00:02:50 Liz Ann Sonders on AI, Bonds & Market Rotation
00:08:00 Fed Rate Hikes, Diversification & Investor Positioning
00:11:03 Smartphone Slump, Memory Chip Shortage & Rising Prices
00:16:00 KFC Drops Pepsi for Coke & Top Wall Street Calls
00:17:00 Top Calls
00:18:09 TSMC Earnings, AI Demand & the Chip Buildout
00:23:30 KPMG CEO on AI Investment & Corporate ROI
00:28:42 AI Jobs, Geopolitics & the CEO of the Future
00:32:14 Rocket Lab Delays Its Neutron Rocket
00:36:50 Markets Rebound as Treasury Yields Fall
00:41:06 Fed Chair Kevin Warsh, Inflation & Rate Policy
00:45:17 Closing Bell
00:50:37 Market Movers, J.B. Hunt Earnings & Consumer Pressure
00:54:03 Market Recap: Defensive Stocks & Falling Yields
00:57:30 John Hirtle on AI Investing & Portfolio Strategy
01:02:47 Private Markets, Venture Capital & Diversification
01:04:21 J.B. Hunt Earnings, Trucking & Driver Shortages
01:08:35 Tesla Roadster, SpaceX & Elon Musk’s Strategy
01:14:17 Tesla’s Future, Robotaxis & the Auto Industry
01:18:20 Porsche CEO Unveils New Supercar Above the 911
01:23:32 Porsche Pricing, China & Luxury Car Strategy
01:28:24 Porsche’s Transformation & Future Product Lineup
01:30:39 What to Watch: Tesla Roadster, Fed Chair & Economic Data
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Data Center Firm Elice Flops on Debut & Merz’s Russia Warning

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Bloomberg Daybreak Europe is your essential morning viewing to stay ahead. Live from Brussels, we set the agenda for your day, catching you up with overnight markets news from the US and Asia. And we’ll tell you what matters for investors in Europe, giving you insight before trading begins.

On today’s show, AI jitters returned after the Korean data center firm Elice flopped on its stock market debut. Shares fell as much as 35% after its IPO, which raised $151 million.

Bloomberg has learnt that the AI cloud computing firm Nscale is in talks to sell computing power to Anthropic, in a deal that could be worth about $45 billion.

The German Chancellor Friedrich Merz has warned against complacency over the dangers posed by Russia, saying that President Putin is seeking to undermine democracy in Europe.

And tougher security measures, including an 11pm curfew in some parts of Paris and other cities, appear to have quelled violent protests in France for now. But unions have called for a strike next month, with more demonstrations planned for this Saturday.

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Chapters:
00:00:00 – Daybreak Europe
00:01:39 – Elice’s 33% Debut Plunge Rekindles Doubts Over AI Spending Boom
00:03:19 – Japan 20-Year Bond Sale Sees Record Demand
00:07:21 – Nscale, Anthropic in Talks for $45 Billion Cloud Computing Deal
00:12:49 – Merz Warns Europe That It’s Underestimating the Russian Threat
00:18:31 – French Unrest Tapers Off After Security Measures Imposed
00:27:46 – Ana Boata, Allianz Trade, Head of Economic Research
00:34:39 – Ukraine Suspects US Blocking Intelligence on Russian Attacks
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Fed’s Warsh Says AI Will Change Monetary Policy Conduct

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Fed Chairman Kevin Warsh described AI as potentially the most consequential change to the US and global economy in his lifetime, calling it a positive supply shock over the medium term. He spoke at an IMF event moderated by IMF Chief Kristalina Georgieva in Bangkok, Thailand.
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