Hayman Capital Management founder Kyle Bass foresees danger ahead for US banks predicting a $250 billion loss from the office sector of commercial real estate.  Speaking on Bloomberg Markets, Basque called the trouble in CR Siloed, citing data centres as one bright spot in light of the A I boom.

It's obvious that offices is having enormous difficulties, so when you look at the various silos of commercial real estate, you're looking at industrial. It still is performing incredibly well despite the rate hikes. If you look at data centres, you can't build enough data centres. Today. I think that a revolution is causing a giant push for for large and new data centres.  

The real constraints there are, how much power can they get delivered to these sites and how much power can they pull?  When you look at multi family, multi family is doing really well, so it's really I see it.  I see it as office and I think the banks in the US will lose  $150 billion in office over time here and there are there's about two trillion of equity in the bank, so  It's like a 10% hit to US banking Equity. Um, and is that evenly distributed? Probably not. Uh, if it were evenly distributed, it wouldn't be that big of a problem. But I really think the focus on losses in US commercial 24  real estate is going to be in the office sector.