Billionaire Perot Warns of Real Estate Recession as Loans Dry Up
Ross Perot Jr., whose family is one of the largest independent property developers in the country, warned of a looming real estate recession if banks don’t start lending again.
“If the industry can’t get a construction loan, real estate will have a recession,” Perot said in an interview on Bloomberg TV on Wednesday. “The key to commercial real estate today will be banking.”
Perot, 64, said it’s gotten so hard for firms to get construction loans, even for industrial buildings, that his company Hillwood is helping to finance other developers.
Hillwood, which has commercial and residential arms, is developing the new Goldman Sachs Group Inc. tower in the Victory Park neighborhood in Dallas, which will house 5,000 employees. Perot’s company has played a role in finding homes for other major companies in North Texas including Charles Schwab Corp.’s new headquarters, Fidelity’s campus in Westlake and Caterpillar Inc.’s office space in Las Colinas.
Texas, and its real estate market, is benefiting from rapid population growth and corporate relocations. Still, local housing prices remain far below levels in New York and California, keeping the state attractive for new residents.