Tesla CEO Elon Musk has no problem making big claims, but his latest one may be more true than we’d like to think.
(From Getty Images.)
Back in May, he told Fox News:
“We really haven’t seen the commercial real estate shoe drop. That’s more like an anvil, not a shoe.
So the stuff we’ve seen thus far actually hasn’t even — it’s only slightly real estate portfolio degradation. But that will become a very serious thing later this year, in my view. […] Almost all cities at this point have record vacancies of commercial real estate.”
He’s right. The landscape of commercial real estate is getting tougher than residential.
It’s putting pressure on businesses, large and small. And as Mike Carr theorizes on today’s episode of The Banyan Edge Podcast, it’s also a huge sign of what’s happening in the economy.
But there are still opportunities for profits, even in situations like this…
Hot Topics in Today’s Podcast:
- Musk says: “Commercial real estate is melting down fast. Home values is next.” [1:00]
- A deeper look at Mike’s recent article on why commercial real estate could trigger more bank failures. [1:50]
- Why the default rate is rising towards “disastrous” in this industry. [6:00]
- How this situation is affecting small businesses. [10:45]
- Check out Adam O’Dell’s latest research — on 282 banks that are on the brink of failure (and how you can profit from it).
And remember, if you have any comments or questions, just send us a message at [email protected]!
Regards,Charles SizemoreChief Editor, The Banyan Edge
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