Kansas City Confronts Impending Commercial Real Estate Collapse

Actually . . . The entire nation endures office space FAIL . . . However . . .

IN KANSAS CITY NOBODY WANTS TO TALK ABOUT CRE CRISIS & UPCOMING DEFAULTS!!!

One of our most KICK-ASS READERS shared a bit of data that local news and pundits are missing.

Here's a scary example, an EXCELLENT QUESTION & more info . . .

It's really CRE where the ticking neutron bomb is to be found, and according to the latest horror story out of San Fran's commercial real estate market, the owner of two of San Francisco’s biggest hotels — Hilton San Francisco Union Square and Parc 55 — has stopped mortgage payments and plans to give up the two properties.

As the SF Chronicle reports, Park Hotels & Resorts said Monday that it stopped making payments on a $725 million loan due in November, handing over the keys to the property to the creditors and expects the “ultimate removal of these hotels” from its portfolio. The company said it would “work in good faith with the loan’s servicers to determine the most effective path forward.”

And so . . . A TKC reader boldly asks . . . 

Will Kansas City's hotels be next?!?! 

Read more via www.TonysKansasCity.com links . . .

San Fran's CRE Apocalypse: The City's Two Biggest Hotels Have Defaulted

The marxist shit(covered)show that is San Francisco is imploding before our very eyes in ways that are both terrifying, memorable wholly different each and every day. First, it was commercial real estate: at 30%, the city has the highest office vacancy rate in the US... ...

'Commercial Real Estate Is Melting Down Fast': Elon Musk Warns Home Prices Will Be The Next To Crash - Yet One Property Type Could Prove Resilient

As a serial entrepreneur who co-founded Tesla Inc., revolutionized the electric car industry and is sending rockets into space, Elon Musk isn't known for being a real estate guru. But lately, the billionaire has been sounding the alarm for the sector. "Commercial real estate is melting down fast," Musk said in a recent tweet.

The Next Crisis Will Start With Empty Office Buildings

Commercial real estate is losing value fast. "I'm about to cancel all my Zoom meetings." It was May 2021, and Jamie Dimon had had enough. The JPMorgan Chase CEO expected that "sometime in September, October," the company's office would "look just like it did before."

S&P Global: Commercial real estate loan delinquency rate 'rises sharply'

There's trouble ahead in the commercial real estate space-especially in the office sector, which has been plagued by the shift to remote work. In the first quarter of this year, the commercial real estate loan delinquency rate increased by 12 basis points to 0.77%.

Commercial real estate crash still looming over US economy

The threat of a commercial real estate market crash is hanging over the already fragile U.S. economy. About $1.5 trillion in commercial mortgage debt is due by the end of 2025, but steeper borrowing costs, coupled with tighter credit conditions and a decline in property values brought on by remote work, have increased the risk of default.

Developing . . .