Short Sellers Up Their Wagers Against Commercial Real Estate Again.

STANDARD & Poor's Financial Services LLC; COMMERCIAL real estate; REAL estate investment; SHORT selling (Securities); REAL estate investment trusts; FINANCIAL crises; INVESTORS; RENT; DEFAULT (Finance); CREDIT derivatives

Money managers are increasing their bearish wagers on commercial real estate due to pressure at regional banks, a downturn in US office prices, and elevated interest rates. Short sellers are betting against real estate investment trust Equinix Inc., and REITs are the most shorted stocks globally. Concerns are growing about problems in commercial real estate, with fund managers viewing it as the most likely source of a systemic credit event. While some believe the real estate market will stabilize over the long term, others anticipate a protracted recovery. Private equity buyers may start buying distressed assets, and property funds are experiencing increased withdrawals as values decline. [Extracted from the article]

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