A Storm is Brewing in the Real-Estate Market, Pimco Warns

by Shawn Langlois
Market Watch

Pacific Investment Management Co. is pointing to gathering clouds in the roughly $3 trillion commercial real-estate market.

“…[A] confluence of factors—volatility in public markets, tightened regulations, maturing loans and uncertain foreign capital flows—is creating a blast of volatility for U.S. commercial real estate,” said Pimco’s John Murray, in a report jointly written with Anthony Clarke.

That volatility could lead to prices falling by as much as 5% in the coming year for so-called commercial mortgage-backed securities associated with the financing of properties, including shopping malls, apartment complexes and office buildings, according to Pimco’s “U.S. Real Estate: A Storm Is Brewing.

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