The “Doom Loop” could cause banks, businesses, and commercial real estate to crash. With real estate valuations down, property owners begin to default, and credit tightens, causing the same cycle to repeat itself again and again, pulling banks and balance sheets down until we reach a bottom. But is this “Doom Loop” scenario just feeding the fear of a housing market crash, or are we months away from this becoming our new reality?

We asked Richard Barkham, Global Chief Economist of CBRE, his take on what could cause a “Doom Loop” and what we should be prepared for. Richard’s team handles some of the planet’s most comprehensive commercial real estate data. When the masses run away in fear, Richard’s team sees opportunity, and if you listen to today’s episode, you’ll know exactly where the prices are too low to pass on.

Richard gives his economic forecast for the next year, when the US could enter a recession, how high unemployment could get, and where commercial real estate prices are heading. While some commercial real estate sectors are facing dramatic price declines, others are looking surprisingly strong. But with a weaker economy and fear of a “Doom Loop” taking hold, are everyday investors safe from this potential economic catastrophe?

In This Episode We Cover:

he real estate “Doom Loop” explained and what could cause this chain reaction to tank asset prices

The “global slowdown” and recession predictions for 2023 and 2024

The weakest and strongest sectors of commercial real estate (and which ones are underpriced)

Cap rate updates and what will finally cause prices to improve again

Best buying opportunities in 2023 and assets with rising rents and declining prices

Unemployment, inflation, deflation, and what we can expect over the next year

And So Much More!

Links from the Show

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The Biggest Crash Imaginable is Coming For Commercial Assets

Grab CBRE’s “Midyear Global Real Estate Market Outlook 2023”

Books Mentioned in the Show

Real Estate by the Numbers by Dave Meyer

Connect with Richard:

Richard's LinkedIn

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-141

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141: The “Doom Loop” That Could Crash Commercial Real Estate w/Richard Barkham 47:38 Share

On The Market

Shownotes Transcript

141: The “Doom Loop” That Could Crash Commercial Real Estate w/Richard Barkham