Commercial Real Estate Could Trigger the Next Big Bank Shock
Commentary
Charlie Munger, believed by some to be the real “brains” behind Berkshire-Hathaway, the multinational investment leviathon helmed by Warren Buffet, recently told The Financial Times, “We have a lot of troubled office buildings, a lot of troubled shopping centres, a lot of troubled other properties. There’s a lot of agony out there” in real estate.
His comments are well-founded.
Crain’s New York Business reports that there is 94 million square feet of available office space in the borough of Manhattan alone. The business periodical reported that the amount of available office space is up nearly 75 percent since March 2020, when COVID-19 first forced business shutdowns….