Interesting video with Carson Block and Jim Chanos. They start discussing CRE around the 20min mark.
Obviously they are shorts, but Chanos made an interesting point near the 22min mark of the video that CRE debt is +/- 30% of GDP which would be about double what it was in the S&L crisis and '08/9 financial crisis. They then get into some of the accounting changes that came earlier this year relating to loan deferrals followed by how some REITs are recognizing large portions of rents as received when they are not actually received in cash.
Obviously we were over retailed and probably over officed pre-COVID. There are some REITs/other operating companies that will have a hard time making it out of this, but curious to hear what y'all have to say.
Video:
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