Some time spent with David Gregory regarding commercial real estate is time well spent. We discuss an article in the Wall Street Journal from September 6th, 2023: "Real-Estate Doom Loop Threatens America's Banks".
There is a LOT to this topic and we cover a wide range of topics. What to consider when looking at commercial real estate:
Look at interest rates and cap rates; especially consider the bid/ask spreads
Consider the debt side of the balance sheet
Look at the risk to principle impairments
Commerical real estate is a broad, wide-ranging category. Manufactured housing and senior housing are two bright sectors. Warehousing, apartments, and hospitals are other positive areas. However, David suggests looking at equity vs. debt investments in the space and shares some insights about when we might reach a bottom and when commercial may be attractive to investors again.