Bubbles, bubbles everywhere – and here’s one more popping:
“A crisis of unprecedented proportions is approaching” in the U.S. commercial real-estate market, according to Randall Zisler, chief executive officer of Zisler Capital Partners LLC.
The CHART OF THE DAY displays quarterly returns on commercial property — apartment buildings, hotels, industrial sites, offices and stores — as compiled by the National Council of Real Estate Investment Fiduciaries. Returns were negative for the past five quarters, the longest streak since 1992.
Property prices have fallen by 30 percent to 50 percent from their peaks, Zisler estimated yesterday in a report. The plunge has wiped out the equity in most real-estate deals that relied on debt financing since 2005, he wrote.
Only two left to go – our stock bubble and China’s real estate bubble.
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