Re:Commercial property deals in the US are starting to pick ...
by j7ake on Thursday February 15, 2024 @04:34AM
(#39380722)
In this case, are deep discounts in residential property next?
Re:Commercial property deals in the US are starting to pick ...
by impossiblefork on Monday February 19, 2024 @03:36AM
(#39427374)
I assume apartment buildings first. The people who actually own their homes aren't constrained in how irrational they can be.
Rather, the increase in interest rates necessitate a general reduction in price on both commercial and other property. WFH means that commercial property will be affected more, but it's something general.
Interest rates have gone from <1% to 5.5%, and if that's sustained there must either be such an increase in rents, which people would not be able to pay, or there must be a reduction in the price of commercial and rental property corresponding to the remainder.