Berkshire Hathaway vice-chair Charlie Munger, the 99 year-old billionaire sidekick to Warren Buffett, has warned of a brewing storm in the US commercial property market.
In an interview with the FT, Munger said American banks were full of bad loans. While Munger said the situation was not “nearly as bad” as it was in 2008, there was plenty of agony out there.
In the interview, he said: “A lot of real estate isn’t so good any more. We have a lot of troubled office buildings, a lot of troubled shopping centres, a lot of troubled other properties. There’s a lot of agony out there.”
He said a number of banks were already pulling back from lending to commercial developers.
