Thomas Barrack on Commercial Real Estate

About two months ago I watched an interview of Thomas Barrack on CNBC. In case you don’t know who Tom Barrack is, he is the chairman of Colony Capital, and arguably one of the best real estate investors active today. A few years ago, Fortune Magazine wrote a pretty in-depth article about him and Colony Capital which is an interesting read if you have the time.

Thomas Barrack now controls some $40 Billion worth of real estate, spanning from hotels, to office properties, to Michael Jackson’s Neverland Ranch. He was recently interviewed on CNBC and asked about his thoughts. I recommend watching it if you haven’t already. I can’t embed it, but the link to the video is below. The bottom line seems to be that trust has evaporated, and because of that, we will see a systematic spreading of financial and economic problems that could ultimately result in commercial real estate dropping by 20-50%.

http://www.cnbc.com/id/15840232?video=937772691&play=1

In addition to this interview, Tom has elaborated on why he believes commercial real estate is in dire straits, and those are embedded below:

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Comments

Christopher B. Kubler, CCIM January 8, 2009

Barrack is a brilliant investor, but he’s stating the obvious here! It was however nice to hear some cautious optimism in his prognostications.

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