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Commercial Real Estate Market: Is 2008 All Over Again?

Writer's picture: CUHK Quant Trading SocietyCUHK Quant Trading Society




Key Takeaways:

  • Office vacancy rate has increased by 3% since 2019 due to remote work, layoffs and the rate-hiking cycle

  • Tightening lending standards will push up borrowing costs and reduce operating margins for CRE businesses

  • Short sellers have stepped up bets against CRE owners, implying overall doom and gloom in the industry

  • Current shrink in fund availability and investor pessimism are fuelling the already-crippled CRE market, at least in medium-term


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