Lead-Lag Live

Understanding Distressed Properties and the Dynamics of Commercial Real Estate with Shlomo Chopp


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Ready to peel back the layers of the commercial real estate market? Get ready to grasp the concept of distressed properties with Shlomo Chopp, a seasoned player in this arena who transitioned from tech to real estate. We discuss Shlomo's journey, which was sparked by the 2009 economic crash, leading him to represent borrowers in CNBS debt negotiations. We also shed light on the role of technology in shaping the retail logistics landscape and the correlation between inverted yields and property values.

As we navigate through the complexities of commercial real estate, we uncover how technological advances and the inability to adapt buildings quickly have turned this field into a reactive business. We evaluate different asset classes to understand how they've been affected by these changes, with a special focus on the office sector, which has been shaken up by the remote working trend. We further zoom in on occupancy rates to determine their influence on property values.

Wrapping up our insightful discussion with Shlomo, we delve into the potential for distress and contraction in the commercial real estate market. We assess the impact of profitless startups on the balance sheets of individuals and companies, and how this overflow can affect industry players. Our exploration extends to the tribalism between lenders and borrowers, and its impact on the CNBS market. Finally, we discuss how social media platforms like Twitter have become an excellent avenue for sharing and learning about Shlomo’s experiences in commercial real estate. This episode will surely equip you with valuable insights on the commercial real estate market from a seasoned industry player. So, tune in, and let's unravel the world of commercial real estate together!

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Lead-Lag LiveBy Michael A. Gayed, CFA

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