Lisa Abramowicz addresses the 1,000 lb gorilla in the commercial real estate room head on with Jones Lang LaSalle’s Mark Gibson.  She asks, “Do you think that that is an accurate description of the tsunami of potential defaults that could be hanging out there?”

“What is the next shoe to drop?”  Mr. Gibson’s response is: “I don’t, simply, because CRE like every asset class adjusts to the cost of capital.”

Ms. Abramowicz then asks – after pointing out the Wall Street Journal calling it the real estate doom loop – “Is this a market right now that is functional?”  Mr. Gibson responds that he thinks we have a bid-ask gap.

I’d like to watch this again in 3 years.