For the first time in history, a commercial real estate developer will lead the free world, but Presidentelect Donald Trump’s tweets are probably more to blame for post election market volatility than his occupation.
Pop rock songwriter P.F. Sloan wrote the quintessential anti establishment tune in 1964 and Barry McGuire made it famous in 1965 singing the lyrics “You don’t believe we’re on the eve of destruction” as it reached No. 1 on the charts.
Although most political observers would conclude the song applies to today’s state of affairs, “Eve of Destruction” would be an overstatement for most commercial real estate players.
Singer Joni Mitchell wrote and recorded “Big Yellow Taxi” in 1970, which became an antigrowth anthem for many environmentalists with its famed line “they paved paradise and put up a parking lot.”
While she most assuredly wasn’t thinking about lenders of commercial mortgage backed securities when she wrote the song, those investors should consider the line “don’t it always seem to go that you don’t know what you’ve got ’til it’s gone” as they tighten the screws on conduit lenders.
Looking towards the future, what role will multi-family homes play at Frannie Mae and Freddie Mac?
Commercial Real Estate – Out of intensive care, but still in recovery