Commercial Real Estate Market Faces Next Wave of Financial Stress, Apollo’s Rowan Says

Apollo CEO says concentrated losses are ahead for the sector
Higher-quality offices can get better rent, Goldstein says

Apollo Global Management Inc. CEO Marc Rowan says the recent US regional banking crisis will cause a “second wave” of losses in the commercial real estate market. “It won’t be systemic, in my view, but it will be concentrated,” he says at the Milken Institute Global Conference in Beverly Hills, California.Source: Bloomberg

Have a confidential tip for our reporters? Get in Touch

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE

By Olivia Raimonde and John Gittelsohn

May 1, 2023 at 11:25 AM EDT

Updated on

May 1, 2023 at 3:52 PM EDT

The financial world is increasingly warning of the pain to come for owners of office buildings.

Investment leaders from Apollo Global Management Inc.’s Marc Rowan to Cain International’s Jonathan Goldstein and Citigroup Inc. CEO Jane Fraser gathered this week in Beverly Hills, California, for the Milken Institute Global Conference, right as turmoil with First Republic Bank peaked with its last-minute sale to JPMorgan Chase & Co. Now, eyes are turning to another source of potential risk: commercial property.

Have a confidential tip for our reporters? Get in Touch

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE