Oct 31, 2009
According to billionaire investor Wilbur L. Ross Jr., the U.S. is in the beginning of a “huge crash in commercial real estate.” On Friday he told Bloomberg Radio “All of the components of real estate value are going in the wrong direction simultaneously,” said Ross, one of nine money managers participating in a government program to remove toxic assets from bank balance sheets.
“Occupancy rates are going down. Rent rates are going down and the capitalization rate–the return that investors are demanding to buy a property–are going up.”
Wilbur L. Ross Jr., is ranked #346 on the Forbes list of the 400 richest Americans. He specializes in leveraged buyouts and distressed businesses and is now participating in a government program to remove toxic assets from bank balance sheets.