According to analysts at Morgan Stanley, The commercial real estate market is showing signs of cracks and weakness that will peak this year.
As commercial real estate is leaning towards a bearish market, the bullish trend for residential housing continues. Many experts believe that the demand for housing will surge in the coming years, especially with commercial real estate on a downtrend.
"We expect 2017 to mark the end of the bull cycle for US CRE," they said in a note on Wednesday.
The possibility for slow decay, in the growth of net operating income, could be a primary risk factor that would contribute to the decline in the commercial real estate market.
