Commercial real estate prices could crash 40% from their peak in a worse disaster than the financial crisis, Morgan Stanley strategist warns

Story by ztayeb@businessinsider.com (Zahra Tayeb)

• Commercial real estate may suffer a worse crash than 2008, warns Morgan Stanley Wealth Management.
• Prices could drop up to 40% from their peak as hybrid working and higher interest rates bite.
• Landlords, various lenders, and business communities all stand to lose from the downturn.

Commercial real estate prices could plummet as much as 40% from their peak in a worse crash than the 2008 financial crisis, according to Morgan Stanley Wealth Management’s chief investment officer. 

The grave outlook is based on a raft of headwinds buffeting the commercial real estate sector, including the work-from-home trend and higher interest rates making it harder for investors to refinance a mountain of looming debt. 

Read the article HERE.