RXR Chairman and CEO, Scott Rechler, was featured in Fortune where he shared his take on the commercial real estate market.
“The CRE industry is coming to grips with the fact that this is the start of an entirely new era—and it’s one that won’t be as friendly as others. Higher interest rates, fewer available loans, increased vacancies due to hybrid work; this is the new normal for CRE. “It really is the new interest rate regime after 15 years of almost no, or zero to low, interest rates,” said Rechler, who also serves on the Federal Reserve Bank of New York’s Board of Directors. “There is an acknowledgement: ‘Okay, this isn’t coming back. Now, we need to accept that values are shifting, capital structures are broken. And we have to come to terms with that.’”
