Banking Overlords: The Armageddon for Commercial Real Estate Investors

Are the consolidation and concentration of power in the banking industry spelling doom for commercial real estate investors?

As my friends over at Commercial Observer mentioned recently in their newsletter “The shotgun marriages between lending institutions sold for pennies on the dollar to their Too Big To Fail overlords has become the feature, rather than the bug, of a federally engineered response” to bank failures.

“The Impact of Banking Consolidation on Commercial Real Estate” 

Is an “Increased Concentration of Power” banking consolidation leads to fewer players in the banking industry, resulting in increased concentration of power among a few large institutions creating financial overlords.

This concentration can limit competition and potentially lead to less favorable lending terms for commercial real estate developers and investors. With fewer banks to choose from, investors may face limited options and less flexibility in negotiating loan terms and conditions.


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