The commercial real estate sector has been under a microscope following the collapse of Silicon Valley Bank. A new report from Moody’s explains why banking turmoil mixed with rising interest rates could lead to vulnerability.
Moody’s Analytics Head of CRE Economic Analysis Kevin Fagan told Yahoo Finance Live that despite concerns surrounding office buildings, he’s focused on another space.
“It’s malls that really have experienced the most pain. They’re going through a real reinvention, akin to what some offices are going to have to go through,” he says.
Despite a difficult post-pandemic stretch, Fagan says that hotels are "one of the only positive stories right now.”
“They’ve really ridden the wave of revenge travel,” he adds, but warns that a bumpy ride could still be ahead. “If the economy turns down, don’t be surprised if hotel does as well,” he explains.
You can watch Rachelle Akuffo's full interview with Kevin Fagan here.
Key Interview Moments:
00:00:14 - Malls have experienced the most pain
00:00:29 - Hotels only positive
