Bloomberg is out with a timely report on the fallout from commercial real estate since the pandemic. From the article: “The Federal Reserve flagged commercial real estate as a trouble spot in February in its semiannual Monetary Policy Report to Congress. It said prices “appear susceptible to sharp declines” from historically high levels, which would be more likely to happen if the pace of distressed sales picks up or if the pandemic leads to longer-term declines in demand. One sign of lenders’ confidence is that the ICE Bank of America index of fixed-rate commercial mortgage-backed securities, which began falling in March ’20, has since fully recovered. Another sign of health: On April 15, Real Capital Analytics Inc., which tracks deal-making, reported that based on preliminary data for the 1st quarter, more U.S. commercial real estate was worked out of distress than became distressed. It was the first time that’s happened since the 2nd quarter of 2019.”
The key theme is timely data. Asset owners need critical real-time data to differentiate good from bad. The Inveniam IO operating system uses blockchain to commute trust & validate data. The next frontier in CRE is the digitization/tokenization of assets connected to better data, which creates liquidity.