“Shark Tank” star and real estate mogul Barbara Corcoran issued a stark warning about the future of the commercial real estate market as buyers and sellers head into the summer months.
Appearing on FOX Business’ “The Claman Countdown” this week, Corcoran said the commercial real estate marketis headed towards “trouble.”
Despite a plethora of commercial vacancies in cities, people aren’t going to jump on them for “pennies on the dollar” because there isn’t enough “confidence” to purchase these buildings right now.
“No one really believes it’s going to turn the corner,” she said bluntly. “People are staying home. Our best office buildings in midtown Manhattan are 50% occupied, and in most major cities or in secondary cities, we have a 20% vacancy rate. No one wants to take that chance.”
Corcoran’s stats reflect a larger trend nationally.
According to data obtained by NBC from commercial real estate company JLL, office real estate vacancies in the U.S. reached levels as high as 20% by Q4 of 2022, the highest they’ve been since the Great Recession in 2008-2009.
Corcoran believes that the regional and small banks will be the ones to suffer, as many businesses are unable to afford or are late on mortgage payments to their lenders.
“I don’t see that turning around,” she said. “I think it’s going to be a bit of a bloodbath before it gets better.”
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When it comes to residential real estate, Corcoran said the market is “rebounding” but has an inventory problem. She also noted there is “no relationship” between commercial and residential markets.
“Sellers don’t want to move from their apartment, or their home, because they don’t want to take on higher interest rates,” Corcoran explained. “The people who are going out there and buying are finding they’re overbuilding. They’re having a hard time getting their hands on the house. And right now, what everybody’s afraid of is the high-interest rates. But the minute those interest rates come down, all hell is going to break loose and prices are going to go through the roof.”
Corcoran said she wouldn’t be surprised if housing prices jumped up again by 20% should interest rates drop by two points.
Realtor.com likened Corcoran’s mentality to the “chicken and the egg” riddle caused by the lack of available housing.
“Many sellers report being concerned about finding another home, which may cause some of them to put plans to list on pause,” Realtor.com chief economist Danielle Hale told Insider. “But this reduces the total number of options for buyers in the market.”
Last month, the Fed raised interest rates another 0.25 points, putting the range between 5.00% and 5.25%.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
