Commercial Real Estate: Uncertain Future for Landlords and Investors

Goldman Sachs has challenged the consensus among Wall Street analysts that commercial real estate could cause an economic shock. Strategists at the bank said there was limited risk of "a vicious circle of large leveraged losses" and that the turmoil would likely be contained to office loan delinquencies. While other analysts have expressed concern about the office sector, Goldman Sachs believes apartments, manufacturing plants, warehouses, and other types of commercial real estate are better-capitalized and won't suffer a huge crash.