Commercial Lending

Commercial Real Estate’s Rebound Could Be ‘K-Shaped’

Morgan Stanley has projected a “K-shaped” bounce for commercial real estate, with bonds backed by industrial properties doing well while those on hotels, retail and offices languish. So reports Bloomberg.

A team of Morgan Stanley analysts led by Richard Hill noted “idiosyncratic risks and rising loss expectations,” highlighting the importance of due diligence among investors in commercial mortgage-backed securities.

The Morgan Stanley analysts added that the overall CMBS delinquency rate of 7.8% “may be understated.”

Read the full article from Bloomberg.

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