A new report from the New York Fed has underlined an alarm sounded by a member of its Board of Directors—RXR CEO Scott Rechler—that the banking system is at risk of a "systemic crisis" due to a wall of CRE debt that is about to come due—a large portion of it backed by NYC office buildings.
According to the NY Fed report, heavy stress in the New York City commercial real estate sector may tip the scale against a full economic recovery for NYC.
"While the residential rental market has bounced back, the retail and office markets have remained slack, largely due to the shift to remote work and online shopping," the report said, in a posting on the bank's website.
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