Could A Change With Fannie, Freddie Be CRE’s Black Swan Event?

Jeffrey Erxleben

DALLAS, TEXAS–The commercial real estate environment is so strong, not only for Texas, but the rest of the nation, that observers can’t help but wonder, what don’t see that we should be worried about? In other words, there is nothing obviously alarming on the horizon, so only an event now lurking in the shadows could bring the industry down. That question — what lies in the shadows? — was on the minds of panelists at RealShare Dallas, held earlier this week.

There were a handful of possibilities tossed about including rising energy costs and a prolonged tariff war — which for a state like Texas would be a serious and sobering affair — but one in particular grabbed our attention. During the capital markets panel discussion, which was moderated by Steve Pumper, executive managing partner of Transwestern, the question of Fannie Mae and Freddie Mac came up.