The commercial real estate market freezes as rate hikes!

As the CPI is historically high, the US and other countries are starting to raise interest rates.

For example, in commercial real estate in Los Angeles, the sales volume of commercial mortgage bonds fell sharply due to rising interest rates, plummeting by about 85% year-on-year.

Adding to the pressure is a recent spate of defaults in the office and retail property sectors, making bond buyers more cautious.

This week, Bloomberg reported that Brookfield Corp., the parent company of the largest office landlord in downtown Los Angeles, has defaulted on loans related to two buildings due to falling demand for space rather than refinancing the debt.