Grant Cardone, a high-profile entrepreneur and real estate investor, has raised concerns regarding the current trajectory of U.S. Treasury rates and the associated implications for commercial and institutional real estate. Cardone asserts that Treasury Secretary Scott Bessent must act to influence 10-year Treasury yields downward, warning that failure to do so could lead to a breakdown in real estate markets “at levels that make the 2008 market housing crisis pale in comparison.”
Cardone’s perspective is shaped by his extensive background in real estate investment. As the founder and CEO of Cardone Capital, he has amassed a multibillion-dollar property portfolio and is recognized for his education efforts targeting both novice and institutional investors. His longstanding focus on market cycles gives his assessment notable weight, particularly in light of his experience during the global financial crisis of 2008 — a period marked by the collapse of the U.S. housing market, widespread defaults, and severe impacts across the global economy.
The basis for Cardone’s current warning lies in the critical role the 10-year Treasury yield plays in the broader financial system. This benchmark rate influences the cost of borrowing for commercial and institutional real estate investors, affecting everything from property valuations to refinancing viability. When rates rise, it becomes costlier for real estate owners and operators to service debt or undertake new projects. Cardone argues that if current trends persist, already-pressured property owners could face mounting distress, potentially triggering a wave of defaults and asset devaluation reminiscent of — if not surpassing — the turmoil seen in 2008.
The authority Cardone brings to this assessment stems from his long career navigating U.S. real estate markets. His public commentary often highlights macroeconomic factors—like interest rates and access to capital — as key determinants of real estate stability. This most recent warning aligns with his broader views on market risk and the need for policy responses to mitigate systemic shocks.
Cardone’s statement also comes amid ongoing debate over the appropriate policy direction for Treasury and Federal Reserve leadership. In recent years, both U.S. Treasury and Federal Reserve officials have faced mounting pressure to balance anti-inflationary measures with the risk of market instability, especially in the wake of persistent post-pandemic inflation and rising debt service obligations for businesses and governments alike.
Cardone’s concerns are echoed across other sectors; industry leaders and policymakers frequently debate the ripple effects of high long-term rates on real estate, banking, and construction. As demand for effective intervention grows, his voice adds to the chorus challenging policymakers to consider the broader economic implications of sustained high Treasury yields.
By connecting his warning to the lessons of 2008 — and projecting the risks now facing institutional and commercial players — Cardone underscores the vital interplay between government interest rate policy and the ongoing health of the American real estate market.
