© Reuters. FILE PHOTO: Bank Of America President of International, Bernard Mensah, speaks as he attends a session of the World Governments Summit, in Dubai, United Arab Emirates, February 12, 2024. REUTERS/Amr Alfiky/FILE PHOTO
(Reuters) – Some property within the U.S. industrial actual property sector may have recapitalising or restructuring however the market is environment friendly, Bank of America President Bernard Mensah mentioned on Monday.
“The U.S. real estate sector is actually pretty sophisticated,” Mensah mentioned on the World Government Summit in Dubai. “It’s had its booms and busts. I suspect some of those assets will need recapitalisation, or they may need restructuring. But the market is pretty efficient.”
“I don’t see anything systemic – famous last words – in that sector,” he added.
A sell-off in regional U.S. financial institution shares triggered by New York Community Bancorp (NYSE:) this month has introduced publicity to industrial actual property in focus for analysts and buyers.
The trade has grappled with looming losses on industrial actual property mortgage books since early 2023, because the sector confronted financing difficulties amid excessive rates of interest and decrease workplace occupancy on account of widespread adoption of distant work.
U.S. Treasury Secretary Janet Yellen mentioned final week she was involved about looming industrial actual property stresses on banks and property homeowners, including that she believed the state of affairs is manageable with help from financial institution regulators.