{"id":1004495470,"date":"2020-11-25T04:36:20","date_gmt":"2020-11-25T12:36:20","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004495470"},"modified":"2020-11-25T07:28:35","modified_gmt":"2020-11-25T15:28:35","slug":"former-fed-chair-bernanke-weighs-in-with-marcus-millichap-on-cre-issues","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/former-fed-chair-bernanke-weighs-in-with-marcus-millichap-on-cre-issues\/","title":{"rendered":"Bernanke Weighs In on CRE Outlook During Marcus &#038; Millichap Panel"},"content":{"rendered":"<div id=\"attachment_1004495479\" style=\"width: 226px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/11\/720px-Ben_Bernanke_official_portrait-e1606260386718.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004495479\" data-attachment-id=\"1004495479\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/former-fed-chair-bernanke-weighs-in-with-marcus-millichap-on-cre-issues\/720px-ben_bernanke_official_portrait\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/11\/720px-Ben_Bernanke_official_portrait-e1606260386718.jpg\" data-orig-size=\"591,819\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Ben Bernanke\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Dr. Ben Bernanke. Image via Wikimedia Commons&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/11\/720px-Ben_Bernanke_official_portrait-e1606260386718.jpg?w=591\" class=\"wp-image-1004495479 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/11\/720px-Ben_Bernanke_official_portrait-e1606260386718.jpg\" alt=\"\" width=\"216\" height=\"300\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/11\/720px-Ben_Bernanke_official_portrait-e1606260386718.jpg 591w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/11\/720px-Ben_Bernanke_official_portrait-e1606260386718.jpg?resize=216,300 216w\" sizes=\"auto, (max-width: 216px) 100vw, 216px\" \/><\/a><p id=\"caption-attachment-1004495479\" class=\"wp-caption-text\">Dr. Ben Bernanke.<em> Image via Wikimedia Commons<\/em><\/p><\/div>\n<p>Brookings Institution economist and former chairman of the Federal Reserve during the Great Recession years, Dr. Ben Bernanke, shared his thoughts on the economy and a range of real estate issues during a webinar on Nov. 18.<\/p>\n<p>Bernanke spoke with Marcus &amp; Millichap President &amp; CEO Hessam Nadji and TruAmerica Multifamily President &amp; CEO Robert Hart during the webinar, which was jointly hosted by the two companies. The discussion touched on several important topics, including affordable housing, the pandemic\u2019s long-term impact on commercial real state and his outlook for <a href=\"https:\/\/www.commercialsearch.com\/news\/office-absorption-to-recover-in-2022-naiop-predicts\/\">a recovery post-pandemic<\/a>. Here\u2019s what Bernanke had to say.<\/p>\n<h2><strong>Fannie &amp; Freddie privatization<\/strong><\/h2>\n<p>Ever since Mark Calabria took the helm at the Federal Housing Finance Agency in April of this year, there has been a renewed push to privatize Fannie Mae and Freddie Mac and bring the mortgage giants out of government oversight. There has also been talk that the Trump <a href=\"https:\/\/www.multihousingnews.com\/post\/for-fannie-and-freddie-big-decisions-await\/\" target=\"_blank\" rel=\"noopener\">administration will try to end the conservatorship<\/a> before President-Elect Joe Biden takes office in January.<\/p>\n<p>However, Bernanke was skeptical that will happen any time soon. \u201cI don\u2019t see full privatization very likely as a political or economic matter,\u201d he said, pointing to strong political support for Fannie and Freddie. Instead, he sees \u201csomething close to the status quo\u201d over the next four years.<\/p>\n<h2><strong>Affordable housing and rent control<\/strong><\/h2>\n<p>With rent control proposals and legislation popping up in localities across the country over the last few years, multifamily trade groups have been busy pushing back on the measures. Bernanke admitted that rent control has some \u201cserious drawbacks\u201d and cities would be better served in taking a responsible approach to increasing the supply of housing.<\/p>\n<p>\u201cI want to emphasize a balanced approach,\u201d he said. He suggested policies that would create more housing units at a higher density that would help balance the supply and demand, therefore bringing prices down naturally, without controls.<\/p>\n<p>Asked whether a major plan at the federal level would be the right move to tackle the problem, Bernanke pointed out that battles over housing almost always take place at a hyperlocal level, and would need to see action taken there, not in Congress.<\/p>\n<p>\u201cI think the battle has to take place at the local and state level,\u201d he said. \u201cIt\u2019s a longstanding one.\u201d<\/p>\n<h2><strong>The pandemic\u2019s long-term impact on CRE<\/strong><\/h2>\n<p>It has become clear over the last several months that the pandemic has had a disparate impact on the various sectors of commercial real estate. Hospitality and retail have been the hardest hit, while office, industrial and multifamily have fared better.<\/p>\n<p>\u201cOverall, if the economy comes back and grows as we expect, it\u2019s good for commercial real estate generally,\u201d said Bernanke, going on to suggest that the country could potentially experience a period of substantial growth following the end of the pandemic, as the U.S. did in the 1920s following the Spanish Flu pandemic.<\/p>\n<p>The need to socially distance could create more demand for square footage in offices, senior housing could become weaker and warehouses and industrial facilities could become stronger, he said. But what could really make the difference for companies and individuals struggling to make rent payments will be support from the government.<\/p>\n<p>\u201cI think that the source of help is going to have to be the federal government in the near term,\u201d said Bernanke.&nbsp;<\/p>\n<h2><strong>Outlook for the post-pandemic recovery<\/strong><\/h2>\n<p>The stock market soared following recent announcements from Moderna and Pfizer on encouraging developments with their respective COVID-19 vaccines. But when will they be widely distributed and be truly effective? Bernanke believes the process will take time, as will the recovery for the many people and businesses that were upended by the virus.<\/p>\n<p>\u201cI think this will go into 2022 at least,\u201d he said. However, he said the next six months will be crucial in terms of how bad the pandemic will get in the U.S., and that will have a big impact on what the timeline for recovery looks like.<\/p>\n<p>\u201cUltimately if we do get a strong control of the virus and don\u2019t have the same issues and disruptions as the Great Recession, I think it will be faster and has been faster,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The former Fed chair shares insights on GSE privatization, the pandemic\u2019s long-term impact on commercial real estate, and the prospects for recovery.<\/p>\n","protected":false},"author":745,"featured_media":1004495485,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21781,21808,23891,21742],"tags":[50689,35648,34836,50692],"class_list":["post-1004495470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-real-estate","category-featured","category-national","category-latest","tag-ben-bernanke","tag-hessam-nadji","tag-marcus-millichap","tag-robert-hart"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Bernanke Weighs In on CRE Outlook During Marcus &amp; Millichap Panel - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/former-fed-chair-bernanke-weighs-in-with-marcus-millichap-on-cre-issues\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bernanke Weighs In on CRE Outlook During Marcus &amp; Millichap Panel\" \/>\n<meta property=\"og:description\" content=\"The former Fed chair shares insights on GSE privatization, the pandemic\u2019s long-term impact on commercial real estate, and the prospects for recovery.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/former-fed-chair-bernanke-weighs-in-with-marcus-millichap-on-cre-issues\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-25T12:36:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-11-25T15:28:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/11\/11439897774_1edf915536_k-e1606317548644.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Holly Dutton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/former-fed-chair-bernanke-weighs-in-with-marcus-millichap-on-cre-issues\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/former-fed-chair-bernanke-weighs-in-with-marcus-millichap-on-cre-issues\\\/\"},\"author\":{\"name\":\"Holly Dutton\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/9259ffaba4775229ae3556b9555e566d\"},\"headline\":\"Bernanke Weighs In on CRE Outlook During Marcus &#038; 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