Mack-Cali Chairman: "Commercial Real Estate Is Somewhere Between An Orderly Massacre And A Disaster"
Just in time for Goldman to upgrade the entire REIT space to a screaming buy.
Some points from Willam Mack:
- The value of real estate from the top is down anywhere between 25% and 75% (or more)
- The hardest hit in the CRE "food chain" is raw land, after that hotels, office, retail and industrial. Least affected i multi-family residential (don't tell Stuy town residents).
- The consumer confidence reflation propaganda machine will take a long time
- The CRE crisis will hit a pinnacle when $500-700 billion of re-equitization becomes needed in a few years. Where that equity will come from is unknown as the US will need a lot of foreign investors to achieve this equity bubble reflation, and they are not there due to a foreigner-unfriendly investment regime.
Also, someone should probably clarify to Mr. Mach what "hide the salami" means (looks like Ms. Quick is somewhat familiar with this particular piece of jargon).