The U.S. commercial real estate (CRE) market may crash soon and cause a ripple effect that could lead to a downturn as significant as the 2008 crisis, said a prominent real estate investment CEO.
Speaking in an interview last week, Patrick Carroll, the CEO of the real estate investment firm Carroll, told CNBC that the market would likely turn sour in the coming years as large amounts of commercial mortgage debt hit maturity.
In recent weeks, industry analysts and executives have issued warnings since the fall of Silicon Valley Bank and said that large amounts of commercial mortgage debt held by banks would have to be refinanced. A report from Business Insider noted that some 80 percent of commercial property debt is held by medium- or small-sized banks….