After so long considering the troubles facing office — and many tiring of hearing it repeatedly — there’s a new problem being brought up: multifamily. But things are more complicated than office.
Some of the problems in multifamily were visible by the summer. Distress rates had begun to climb, and the volume has been disturbing.
Short-seller Carson Block said multifamily in the Sun Belt was next to have major CRE problems after office. “A lot of multi-unit residential in the US — particularly in the Sun Belt — is in trouble,” Block told Bloomberg in an interview. “That’s the shoe that hasn’t really dropped yet, but that we think will.”
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