Commercial Real Estate Distress: Are We Nearing a Turning Point?

Distress in commercial real estate is still rising, but could we be seeing early signs of stabilization? While office properties continue to dominate distressed assets, multifamily is emerging as a growing concern—with over $108 billion now on MSCI's watchlist. In this episode, Kathy Fettke breaks down the latest MSCI reports revealing trends in property distress, investor sentiment, and which asset classes are showing resilience. We'll dive into the sharp decline in hotel transactions, why industrial and retail are holding strong, and how distressed property sales are picking up momentum. Is this the start of a market recovery, or is there more turbulence ahead? Tune in to Real Estate News for Investors to find out! (00:00) Commercial Real Estate Distress (00:26) MSCI Reports (01:03) Office (01:13) Multifamily Distress (01:50) Property Sales (02:21) Retail and Industrial (02:33) Hotel Sales (03:24) Key Takeaways LINKS JOIN RealWealth® FOR FREE https://realty.realwealth.com/join-now/ FOLLOW OUR PODCASTS Real Wealth Show: Real Estate Investing Podcast https://tinyurl.com/RWSsubscribe Real Estate News: Real Estate Investing Podcast: https://tinyurl.com/RENsubscribe Sources: 1. https://www.us.jll.com/en/trends-and-insights/research/office-market-statistics-trends 2. https://www.cbre.com/insights/books/us-real-estate-market-outlook-2025