There have been two camps on the immediate future of office properties. One — the larger it seems — say the pain will continue. The other sees better times, at least if the office is a Class-A or trophy.
Put Morgan Stanley into the first camp. In a recent note from the bank, according to Business Insider, which got a copy, analysts said that U.S. office buildings are facing a total 30% valuation drop from peak values. That drop would include the 20% down from peak already experienced, according to data Morgan Stanley credited to Real Capital Analytics.
Not that office is the only one dealing with problems. Morgan Stanley also addressed the elephant that's filling the room to such a degree that people are absolutely talking about it: $2 trillion worth of maturity wave in the next few years.
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