Episode Details

Nick Halaris, President of real estate investment firm Metros Capital, joins Jack to share insight on the challenges commercial real estate faces after a surge in interest rates and the fall of two U.S. banks.

The phrase “commercial real estate” is a catch-all terms that refers to offices, apartment buildings (“multi-family”), retail, and industrial spaces. Unlike residential real estate, which is typically financed with long-term fixed-rate mortgages, a lot of commercial real estate was financed with floating rate debt, which means that as interest rates rose last year, the interest expense of some commercial real estate developers rose dramatically. Halaris argues that the turmoil in the banking system will likely induce banks to tighten their lending, which would inflict further hardship onto commercial real estate, much of which is financed via smaller regional banks. 

Filmed on Tuesday, March 28, 2023.

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Nick Halaris website: https://nickhalaris.com/

Profit+ Subscribe Link: https://nickhalaris.beehiiv.com/

Nick Halaris on Twitter: https://twitter.com/NickHalaris

Nick Halaris on LinkedIn: https://www.linkedin.com/in/nick-halaris-4a25b93/

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Timestamps:

(00:00) Intro

(00:25) What Is Commercial Real Estate?

(03:20) Interest Rates Have A Huge Impact on Real Estate Valuations

(11:48) "Commercial Real Estate Is In Serious Trouble"

(16:58) Delinquency Rates Are Rising...

(19:13) Real Estate Is No Longer An