Surging interest rates and the rise of remote work have combined to create a nightmare scenario for commercial real estate investors. Just ask Barry Sternlicht, co-founder, chairman, and CEO of Starwood Capital Group, a real estate investment firm with $115 billion in assets under management.
“There’s a hurricane over real estate right now,” the billionaire investor told David Rubenstein, co-founder of the private equity firm The Carlyle Group, in an interview for Bloomberg Wealth taped June 28. “We’re in a category 5 hurricane, and it’s sort of a black cloud hovering over the entire industry until we get some relief or some understanding of what the Fed is going to do over the long term.”
Sternlicht, known for criticizing the Federal Reserve’s aggressive interest rate hikes over the past year, said he believes his industry is a victim of central banks’ efforts to tame inflation. He had some thoughts about