Elon Musk Says Commercial Real Estate DEBT a SERIOUS & Looming Issue: Housing Bubble 2.0

With the recent rash of Bank failures, it is clear to see that there will be more financial and economic issues to face in the near future. Commercial Real Estate debt is a topic that has gone unnoticed for some time now, however it is about to rear its head and send shock waves through the economy. Around 70% of the financing to this sector is supplied by local and regional banks. Additionally it is estimated that the commercial sector is running on a 60% to 70% occupancy rate. This will become problematic when $2.5 Trillion are up for refinancing in the next few years especially when interest rates have doubled. We will most likely see and experience a crisis in this sector.