Goldman Sachs CEO Sounds Alarm Bells for Commercial Real Estate Sector
Rising interest rates and a shift toward remote work have participants cautious about the outlook in the commercial real estate industry in the coming quarters. Earlier this year, CBRE Group, the world's largest commercial real estate firm, pointed out several headwinds that could affect valuations of commercial real estate properties.
Last month, Goldman Sachs (NYSE: GS) CEO David Solomon acknowledged that his firm would have to markdown some of its real estate holdings in its second-quarter earnings. Here's why commercial real estate valuations could be under pressure and how it may affect Goldman Sachs.
For the better part of this year, market participants have sounded alarm bells around the commercial real estate industry. In May, the Federal Reserve released its Financial Stability Report. In that report, the Fed warned that trouble in the commercial real estate sector could pose a risk to the U.S. financial system.
Source Fool.com
