The commercial real estate industry is in a “Category 5 hurricane” caused by the Federal Reserve’s interest rate hikes, says billionaire investor Barry Sternlicht.
“We’re in a Category 5 hurricane,” the Starwood Capital group chief executive said during an episode of Bloomberg Wealth with David Rubenstein.
“It’s sort of a blackout hovering over the entire industry until we get some relief or some understanding of what the Fed’s going to do over the longer term,” he told Bloomberg.
A combination of higher interest rates, a credit squeeze, and remote work trends are squeezing the commercial real estate industry.
Sternlicht’s Starwood has defaulted on a $200m mortgage backed by an Atlanta office tower.
