New York Real Estate Legend Warns CRE Crisis Just Starting

Bloomberg's Markets Live team surveyed Terminal subscribers last week and found that most respondents were forecasting a crash in the office tower segment of commercial real estate. Days later, a Deutsche Bank survey of professionals revealed respondents were "nervous" about interest rate shocks sparking the next big "global accident."

Earlier today, during the early morning hours in Europe, Deutsche Bank AG Chief Executive Officer Christian Sewing told Bloomberg TV that the CRE space is facing challenging times in the years ahead due to elevated interest rates. 

Sewing reaffirmed DB's CRE exposure is "very much contained" amid elevated borrowing costs and remote work trends leading to soaring office tower vacancies across major metro areas.