China might not be the only country with property management woes. The US is now showing signs of having property woes as well.
In December and for months we reported on the collapsing property management business in China. This industry which was a quarter of China’s GDP was falling apart as companies could no longer pay their debt. Chinese company Evergrande with over $300 billion in debt was falling apart. It looked like Evergrande’s solvency was part of a bigger issue.
Now we have to look at the US property market, specifically the commercial property market. COVID showed that companies no longer had to maintain huge office buildings for their employees. People could work from home. This cost-saving was noticed and big inner cities will be the victims.
Zero Hedge reports:
The world’s largest owner of commercial real estate, Blackstone has turned over the keys of 1740 Broadway, a 26-story office tower a block from Carnegie Hall, to the special servicer on its $308M commercial mortgage-backed security, Commercial Observer reports.