Mastering the metropolis through research and thought leadership.
Working Papers

The De-Leveraging of Global Real Estate

Working paper #685
Jacques N. Gordon and Richard Kleinman

The credit crisis of 2008-2009 highlighted the importance of debt to the financial structure of capital intensive asset classes like real estate. An examination of international real estate markets shows how the level and type of legacy debt issues will affect each country going forward. The use of debt varied widely around the world. It ranged from countries with high debt levels, relative to both GDP and asset values, and a large share of securitized debt (the U.S. and U.K.), to countries where bank financing dominated (Australia and Japan ) and others that were much less leveraged overall (Canada). These differences will affect how legacy debt issues are addressed, when a market will return to a normal financing environment, and the environment for equity investing going forward. The impact of regulatory actions and the policy response to de-leveraging will also be significant when looking across international markets.

Download full paper · 1MB PDF


In This Section
Explore Topics

1010 Affordable Housing Amazon Amenitization Architecture Artificial Intelligence Asia Australia automation Autonomous Vehicles bonds Borrowing Constraints Brexit California Canada Capital Business China Co-Working Environment coastal markets cold storage Colombia Commercial Brokerage Commercial Real Estate commissions Congestion consumer bias covid-19 CRE credit card market Credit Default Swaps Credit Insurance Credit Risk Transfers Culture Data Analytics data centers Data Collection Technology Debt Market Demand Demographics Density Development Discrete Choice disruption Diversity drones e-Commerce Economic Corridors economic policy economics education election studies Equity Funds Equity Market Ethnic Factors Europe Fannie Mae financial asset management Foreclosures Foreign Policy France Freddie Mac general equilibrium Global global economy Global Financial Crisis Globalization great depression Great Recession healthy buildings Hedonic hospitality Housing & Residential housing boom Housing Disease housing prices Housing Supply Identity Income Inequality India inflation Inter-generational mobility interest rates Investing jobs labor market Lagging Regions land use regulation Language life sciences Macroeconomics malls Market Pricing megacities Microeconomics Migration Minimum Payments Mixed-Use Mobility moral hazard mortgage insurance mortgage market Mortgage Rates Mortgages Multi-family Nation Building Non-Traditional Mortgages Office Market office sector pension funds Placed Based Policies Political Risk Price Discovery Private Equity Business public health public policy Public Schools real estate brokerage Real Estate Investment Real Estate Investment Trusts Recession Rental Retail Retirement reverse mortgages Risk Adjustment risk management risk-shifting robotics single family housing Slums Sorting South America Spatial Regions spillover effect stimulus package Sub-Prime Mortgages Sustainability Technology telecommunications trade transportation unemployment United States Urban Urbanization Warehouse welfare work from home

arrow_drop_up