The commercial real estate market is showing some signs of distress, due to a combination of higher borrowing costs and tighter lending standards as a result of March’s banking tumult. Data from CoStar reported by the Wall Street Journal reveals that apartment building sales last quarter saw their steepest decline since the Great Financial Crisis. Meanwhile, Moody’s Analytics notes that apartment rents declined in most US markets in the first three months of 2023, as vacancies for rental properties spiked.
The stifling of short-term real estate investing tactics like house-flipping is another indication that the market is feeling the squeeze. According to Zillow’s chief economist Skylar Olsen, the early-pandemic buying landscape has all but gone, and investors need to be looking further down the line at long-term approaches that result in steady cash flow.
JPMorgan CEO Jamie Dimon also chimed-in on the state of the market in his letter to shareholders earlier this week. Highlighting the various geopolitical risks he sees ahead, Dimon made the case that the banking turmoil was far from over.
Smart investors looking to capitalize on this situation have been turning to short-sellers. According to Bloomberg data, the shorting of First Republic Banks stock earned $848 million last month alone. As Moscow and Beijing continue to grow closer, Russia’s currency market is also becoming dominated by China’s yuan as it passes the greenback in trading volume.
The AI sector is also an area to watch, according to research analysts who have identified 12 crypto projects that support the technology. Meanwhile, despite recent declines, AMC stock is set to rebound as a lawsuit settlement allows the theater company to move forward with a reverse-stock split and economic raise.
Phil Rosen is the CEO of Succession. He was featured in the article was talking about the commercial real estate market and its signs of stress. Phil is a well-known entrepreneur who has experienced success in the technology and financial industry. He has a passion for innovating and finding new solutions for industries. He has helped to shape the company by utilizing long term strategies that result in steady cash flow.
The article also mentioned JPMorgan CEO Jamie Dimon, who has served as the company’s head since 2005. He is one of the most influential figures in banking, and his annual letters to shareholders often provide an insight into his views on the industry. He sounds the alarm on the market’s fragility in his latest letter, and cautions investors as to the geopolitical risks they should be aware of in the coming years.
