The Next Commercial Real Estate Downturn: It’s Not A Matter Of When, But How

By Lisa Brown, GlobeSt.com

A recent report shows that many systemic risks are re-emerging one decade since the last major recession and real estate finance disruption — aligning with history’s schedule of economic disruption every decade since the 1850s. But today, there are new variables at play to be aware of — possible game-changers.

CCIM Institute chief economist KC Conway, in partnership with the Alabama Center for Real Estate at the University of Alabama, released the report, “Commercial Real Estate Finance Disruption: Déjà Vu or Something New?” It identifies the sweeping changes taking place within commercial real estate (CRE) finance and the potential to cause the next major disruption in the industry.

“It is not a matter of when, but how,” Conway said. “We’re going to see a disruption in liquidity for commercial real estate lending as a result of accounting, regulatory, technological and financial product shake-ups — many of which are not on anyone’s radar.”

In this exclusive, Conway shared his insights into the signs of disruption, the risks, CRE’s evolution and transaction transparency.

To read the full article, please visit the Alabama NewsCenter website.

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