Re: clny speaking
Pricing in NYC real estate has been high based on high density, lots of consumers, especially tourists from all over the world.
With exogenous demand crashing for clothing/retail/entertainment/restaurants - there has to be a repricing for the rents.
Most of the Office demand is for knowledge workers, who can also work remotely, so again falling demand. Needs repricing of rents.
When rents get repriced, the value gets repriced. When market rents cannot support the debt, then bankruptcy or other stuff.
this is fairly normal stuff. I wouldn't be surprised if some NYC based REITs did go bankrupt. Leverage lessons anyone?