Maurice Bedard, senior writer and podcast host for SoCalNews rings the alarm bell about refinancing troubles in the CRE industry. Along with Lisa Shalett, who serves as the Chief Investment Officer for Morgan Stanley Wealth Management, they believe that the commercial real estate (CRE) market is facing a significant challenge. According to Shalett, office properties are already grappling with long-term obstacles stemming from remote work, and she anticipates further difficulties with vacancy rates approaching a 20-year high. MS & Co. analysts predict that the CRE market could experience a price decline of up to 40% from its peak, which would be more severe than the Great Financial Crisis. Additionally, Shalett highlighted that over 50% of the $2.9 trillion in commercial mortgages will require renegotiation in the next 24 months, coinciding with an anticipated rise in new lending rates by 350 to 450 basis points.

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