Daniel Tishman, chairman and CEO of the Tishman Construction Corporation, told CNBC this morning that commercial real estate is the “second shoe” to drop in hurting the economy.
“We’re getting through the housing issue….but the numbers involved in commercial real estate in all sectors are staggering,” Tishman said. “Literally trillions of dollars are involved in commercial loans. The roll over of those loans in the next 5-7 years is going to happen and the money just isn’t there for refinancing.”
The industry needs government help and TALF has to be extended,” Tishman said.
Tishman also said that banks are very exposed. “There are huge numbers of banks that could have problems (and face closings) going forward because of carrying these commercial loans.”
